Texas Oil, Ohio Power, Georgia Minerals
All Eyes on the Fallout of U.S. 'Investment Pressure' on South Korea
U.S. President Donald Trump and Japanese Prime Minister Sanae Takaichi have officially announced a U.S.-bound investment project worth 36 billion dollars (about 52 trillion won) as the first outcome under the bilateral trade agreement. This announcement marks the first phase of Japan's pledged total of 550 billion dollars (about 797 trillion won) in investments in the United States and is seen as a move to solidify the two countries' economic security alliance in strategic sectors such as energy and critical minerals.
On the 17th (local time), President Trump stated on his social networking service (SNS) that a "huge trade deal with Japan has just been launched," and unveiled three major projects: crude oil and gas export infrastructure in Texas, a gas-fired power plant in Ohio, and a critical minerals facility in Georgia. President Trump particularly stressed that "these projects would not have been possible without the very special word 'tariffs'," highlighting them as achievements of his protectionist trade policy. He added that the Ohio gas-fired power plant would become the largest in history, and that the critical minerals facility would put an end to the "foolish dependence" on foreign suppliers.
U.S. Secretary of Commerce Howard Lutnick said in a statement that the investment will include power generation facilities with a capacity of 9.2 GW and deepwater crude oil export facilities in the Gulf of Mexico, and that it will create thousands of high-paying jobs. Secretary Lutnick explained that "Japan will provide capital, while the United States will gain strategic assets and energy dominance."
Japanese Prime Minister Sanae Takaichi also underscored the significance of the projects on X (formerly Twitter) on the 18th, confirming that they represent the first achievement of the U.S.-Japan "Strategic Investment Initiative."
Prime Minister Takaichi, in particular, referred to artificial diamond manufacturing in the critical minerals sector, noting that "both Japan and the United States are highly dependent on a specific country," and expressed her intention to enhance self-sufficiency in the supply chains used for processing materials for semiconductors and aircraft components. She also stated that electricity generated from gas-fired power plants will be supplied to artificial intelligence (AI) data centers and other facilities. Prime Minister Takaichi made it clear that, from the perspective of Japanese companies, increased sales and business expansion are expected through the supply of related equipment.
As the United States and Japan have swiftly materialized their first investment project, there is a growing possibility that the Trump administration's pressure will turn toward other allies such as South Korea. Last month, President Trump took issue with delays in the passage of South Korea's special bill on U.S.-bound investment in the National Assembly and threatened to raise tariffs on Korean-made automobiles and other products to around 25%.
In response, Minister of Trade, Industry and Energy Kim Jeonggwan and Trade Minister Yeo Hankoo urgently visited the United States to meet with senior officials such as Secretary Lutnick and members of Congress, while Foreign Minister Cho Hyun also traveled to the United States to meet with Secretary of State Marco Rubio and United States Trade Representative (USTR) Representative Jamieson Greer. At the same time, South Korea's National Assembly, led by the ruling Democratic Party, is seeking swift passage of the U.S.-bound investment bill.
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