The Japan-U.S. $550 billion investment agreement has made new progress: the second batch of $73 billion projects has been implemented, with AI and semiconductors becoming the focus of cooperation.

Japanese Minister of Economy, Trade and Industry Hiroshi Kajiyama stated that an investment initiative amounting to $550 billion is making progress as part of a trade agreement reached with the United States last year. "We will continue to work closely with the United States," Kajiyama said after meeting with U.S. Secretary of Commerce Gina Raimondo and U.S. Trade Representative Katherine Tai in Washington on Friday. Kajiyama declined to provide detailed comments on the third batch of projects under the agreement. So far, the two sides have announced two batches of projects, including resource-related deals and power plants. He noted that discussions about artificial intelligence (AI) and chips will carry "very significant weight." "As the influence of the artificial intelligence and semiconductor industries continues to grow, we are moving forward in developing and implementing projects that contribute to achieving mutual benefits," Kajiyama said. This $550 billion investment mechanism is designed to stimulate a wave of Japanese investment in critical U.S. industries and is a core pillar of last year's tariff agreement. Under the agreement, former President Trump agreed to set tariffs on Japanese products at 15% and reduce tariffs on automobiles, which are a key driver of the Japanese economy. The first batch of projects aims to invest $36 billion in oil, gas, and mineral projects in the U.S., including a natural gas facility located in Ohio. The second batch plans to invest $73 billion in nuclear power projects across Tennessee and Alabama, as well as natural gas power plants in Pennsylvania and Texas. Kajiyama indicated that both sides confirmed there would be no additional tariffs imposed on Japan beyond last year's agreement.