Japan Given 45 Days Under Trade Deal To Invest In Trump-Picked US Projects Or Face Steep Tariffs

Japan has been given 45 days to channel $550 billion of its capital into US projects chosen by President Donald Trump or face the return of steep tariffs on its exports, Financial Times reported, citing an unpublished memorandum seen signed by the two countries.

The memo, signed Thursday (4 September) in Washington, makes clear that tariff relief hinges on Japan’s ability to rapidly commit funds.

Failure to do so would mean a swift reimposition of the 25 per cent tariffs that had previously threatened Japanese goods.

Under the new arrangement, the levy has been cut to 15 per cent.

The strict timetable underscores the pressure Tokyo faces under Trump’s “America First” trade strategy.

While the agreement reduces headline tariffs, it forces Japan — the world’s fourth-largest economy and one of America’s closest allies — to accept terms rarely seen in international trade.

As part of the deal, Trump himself will decide which US projects receive Japanese capital.

An investment committee chaired by US Commerce Secretary Howard Lutnick will present options, but the final pick rests with the president.

The financial structure also heavily tilts in Washington’s favor.

Profits generated will be split evenly until Japan’s investment is repaid, after which the US will claim 90 per cent of future proceeds.

Analysts say this could reshape the balance of benefit in bilateral trade.

Japan’s concession follows similar commitments made by South Korea and the EU, both seeking to shield their exporters from Trump’s punitive tariff regime.

However, details of these arrangements have often been opaque, with Washington and other countries offering diverging accounts.

The latest memorandum reflects Trump’s broader pattern of extracting revenue from foreign trade and domestic industries alike.

Last month, he secured a deal with Nvidia and AMD to pay a portion of China-derived revenue to his administration, and earlier this year took a share in US Steel as part of Nippon Steel’s takeover bid.

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