Trump unveils first Japan investments under trade pact

By Admin

18 Feb, 2026

$36 Billion First Tranche Announced Ahead of Takaichi Visit

Donald Trump on Tuesday (February 17, 2026) announced Japan’s planned investments in U.S. energy and critical minerals projects, marking the first tranche under a landmark bilateral trade pact. The announcement comes ahead of Japanese Prime Minister Sanae Takaichi’s scheduled visit to Washington on March 19.

According to the United States Department of Commerce, the commitments total $36 billion and focus on strengthening U.S. energy infrastructure and advanced manufacturing capabilities.

In a post on Truth Social, Mr. Trump stated:

“Japan is now officially, and financially, moving forward with the FIRST set of Investments under its $550 BILLION Dollar Commitment to invest in the United States of America.”

The investments are part of a broader $550 billion pledge made by Tokyo in July, aimed at rebuilding and expanding core American industries through 2029.

Key Projects Under the First Investment Rollout

Natural Gas Facility – Ohio

One of the flagship projects is a natural gas facility in Ohio. The Commerce Department clarified that the facility is expected to generate 9.2 gigawatts of power, significantly enhancing U.S. domestic energy production capacity.

While Mr. Trump initially described it as a liquefied natural gas (LNG) facility, officials later emphasized its broader power generation capacity and infrastructure significance.

Crude Oil Export Facility – Gulf of Mexico

The second major project includes a crude oil export facility in the Gulf of Mexico. According to the Commerce Department, this facility is projected to generate between $20–$30 billion annually in U.S. crude exports.

This move reinforces America’s position as a global energy exporter while aligning with Japan’s long-term energy security strategies.

Synthetic Industrial Diamond Manufacturing – Georgia

A third key initiative involves establishing a synthetic industrial diamond manufacturing facility in Georgia.

The Commerce Department stated that the plant will “onshore production 100% of U.S. demand for synthetic diamond grit,” a critical material used in advanced industrial and technological production, including aerospace, electronics, and high-precision manufacturing.

This project is considered strategically important as synthetic diamond grit is a vital input for cutting, grinding, and polishing in advanced industrial systems.

Understanding the $550 Billion Commitment

In July, Tokyo agreed to invest $550 billion in the United States through 2029. This pledge was part of negotiations that reduced threatened U.S. tariffs on Japanese imports from 25% to 15%.

However, Japanese Trade Minister Ryosei Akazawa has clarified that only 1–2% of the total $550 billion would involve direct capital investment. The remaining funds are expected to consist of:

• Bonds
  
  

• Loans from the Japan Bank for International Cooperation (JBIC)
  
  

• Credits guaranteed by the Japanese government
  
  

This financing structure highlights that much of the pledge supports structured financial backing rather than immediate direct cash deployment.

Trade Diplomacy and Tariff Leverage

The rollout of these projects is expected to be a central agenda item during Prime Minister Takaichi’s White House meeting with President Trump.

As negotiations progressed, media reports suggested tensions were rising ahead of the visit. However, Mr. Trump framed the investments as a victory tied closely to tariff strategy.

“The scale of these projects are so large, and could not be done without one very special word, TARIFFS,” he wrote on social media.

The reduced tariff rate of 15% on Japanese imports appears to have played a key role in securing Tokyo’s long-term industrial investment pledge.

Strategic Implications for Energy and Critical Minerals

The investments underscore three strategic priorities:

• Energy security and export expansion
  
  

• Onshoring critical mineral and advanced material production
  
  

• Strengthening U.S.-Japan economic cooperation
  
  

With projects spanning Ohio, the Gulf of Mexico, and Georgia, the first tranche signals a tangible shift from policy agreement to physical infrastructure development.

While details about participating companies and financing mechanisms remain limited, the announcement marks the beginning of what both governments describe as a transformative economic partnership.

As the March 19 meeting approaches, further clarity on implementation timelines and corporate participation is expected, making this first $36 billion rollout a significant milestone in U.S.-Japan trade relations.