U.S. and Japan Discuss First Investment Project in the United States
Candidates Include Synthetic Diamond Production
While it has been reported that United States President Donald Trump has expressed dissatisfaction over Japan's delay in investments in the United States, Japan's Minister of Economy, Trade and Industry in charge of tariff negotiations, Ryosei Akazawa, will visit the United States from the 11th to the 14th.
According to Kyodo News and other outlets on the 10th, Minister Akazawa will hold talks with U.S. Secretary of Commerce Howard Lutnick during this visit. The two sides are expected to discuss Japan's 550 billion dollar (about 802 trillion won) investment in the United States, which was pledged when they concluded trade negotiations in July last year.
Japan is reportedly coordinating with the United States on its first batch of investment projects, including gas-fired power facilities for data centers, synthetic diamond manufacturing plants, and crude oil loading ports. However, Minister Akazawa indicated that specific investment projects would not be finalized during this trip. He said, "(The United States) makes various proposals based on America First, even to its allies," adding, "Every time we engage, we are having difficult discussions with our national interests on the line."
On November 28 last year, Trump Donald, who visited Japan, and Takaichi Sanae, Prime Minister of Japan, are talking. Photo by Reuters Yonhap News
Previously, the Nihon Keizai Shimbun (Nikkei) reported that the first round of Japanese investment projects in the United States is expected to total 6 trillion to 7 trillion yen (about 56 trillion to 66 trillion won). Once Secretary Lutnick and Minister Akazawa discuss the investment projects, President Trump will make the final decision. The United States and Japan consult on the investments, but the authority to decide rests with President Trump. Proposals discussed in the investment coordination committee are re-examined by a committee composed solely of U.S. nationals, and this committee then recommends investment destinations to President Trump.
The cabinet of Japan under Prime Minister Sanae Takaichi secured a stable basis for governing after the ruling Liberal Democratic Party scored a landslide victory in the general election for the House of Representatives held on the 8th. Prime Minister Takaichi is scheduled to visit the United States in mid-March to hold talks with President Trump. President Trump publicly endorsed Prime Minister Takaichi just before the general election, and after the Liberal Democratic Party's victory he congratulated her, saying, "She is a highly respected and very popular leader."
Although President Trump has signaled high expectations for Prime Minister Takaichi, the Nikkei reported that he is also harboring dissatisfaction over Japan's delay in investments in the United States. The newspaper said that before President Trump voiced his support for Prime Minister Takaichi, the U.S. side conveyed to Japan that "President Trump is furious over issues related to Japan."
The Nikkei reported that "Secretary Lutnick originally told President Trump that the first investment project would be decided by the end of 2025, but it is taking time to draw up the plan," and that President Trump is showing distrust, believing that "Japan is deliberately dragging out the negotiations." The paper added that "Japan sees things differently," interpreting Tokyo as being in no hurry, in light of factors such as U.S. Supreme Court rulings related to reciprocal tariffs.
The Nikkei also reported that at the U.S.-Japan summit in March, President Trump may ask Prime Minister Takaichi to increase defense spending (the defense budget) and to further open Japan's rice market, adding, "President Trump's 'full support' does not come for free."
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