According to Daily Asia, U.S. Commerce Secretary Lutnik said on October 27 that the $55 billion investment framework reached by Japan and the United States will focus on areas such as electricity, pipelines and other "quality to national security and almost no risks".
With US President Trump opening his first visit to Japan for his second term, Lutnik first arrived in Tokyo and received an interview with Japan Economic News on the 27th.
Last month, Mr. Lutnik and Japan’s Minister for Economic Regeneration, Mr. Zhejiang, were signing a Memorandum of Understanding in Washington that outlined the operational details of Japan’s $55 billion investment in the United States, promised to reduce tariffs, but the investment project has not yet been determined.
According to the memorandum of understanding, the United States has set up an "investment committee", led by Lutnik, to screen qualified investment projects.
In the interview, Lutnik revealed that 10 to 12 Japanese companies involved in power supply, shipbuilding and other fields are exploring opportunities to invest in the United States, and is expected to determine the first project at the end of this year.
Lutnik said that the development of data centers in the United States is driving power demand growth, and Japanese companies will provide gas turbines, transformers, cooling systems, etc. to help expand U.S. power generation capabilities.
On September 4, local time, U.S. Commerce Secretary Lutnik and Japan's chief trade negotiator Ryoshima Akasawa signed a memorandum of understanding. Lutnik X account
Loutnik said Japan’s $55 billion investment plan in the United States is a “co-investment” for both countries’ economic security, with more than half of the funding likely to be spent on electricity and energy development.
He suggested that the LNG development project in Alaska could be eligible for investment, and that this is a huge project, who can contract it?
The Financial Times previously that Trump attempted to use tariff pressure to force Japan and South Korea to participate in the Alaska LNG development project to sell natural gas to Asia by connecting the northern Alaska gas field and the 1,300-kilometer pipeline in the southern port of Nikki.
But Asian countries, such as Japan and South Korea, questioned the project’s economic feasibility and business logic, and analysts estimated the project could cost more than $60 billion. Japanese businessmen and South Korean officials have revealed that the two countries would not consider the project without pressure from the Trump administration.
In addition to specific investment projects, Nikkei Asia mentioned on the 28th that the Trump administration's control of work visas has become more and more stringent, which is one of the most worrying issues for many companies considering investing in the United States. Last month, South Korea's Hyundai Motor factory in Georgia was raided by US immigration authorities, and 475 people were arrested, mostly Korean citizens.
Lutnik said in an interview that the United States may relax relevant visa policies. "For companies investing in the United States, in the future, they can submit applications to the Ministry of Commerce to provide a list of people who want to go to the United States to help build factories and train American employees. Then we will issue visas to these companies."
At present, the U.S. imposes a benchmark tariff of 15% on almost all Japanese imports, but the U.S. Department of Commerce is considering introducing industry-specific tariffs on semiconductors, pharmaceuticals and other products.
While Japan and the United States have agreed not to raise tariffs on semiconductors and drugs, the agreement has not yet been formally agreed in the form of a presidential decree, which has raised concerns in Tokyo.
On October 28, local time, Trump held talks with Japan’s new prime minister, High City Morning Sun. This was Trump’s first visit to Japan in six years.
The two leaders signed an agreement aimed at opening the “golden age” of the two-country alliance, which is less than a page of paper, reiterating the framework previously reached, namely that the United States will impose 15 percent tariffs on goods imported from Japan, and Japan will set up a $55 billion fund to invest in the United States.
The two subsequently signed a second agreement, establishing a framework for the United States and Japan to secure the supply of critical minerals and rare earth.
In addition, Reuters, citing sources informed on Monday, said Japan and the United States would also sign a Memorandum of Understanding on Japan's assistance to expand U.S. shipbuilding capabilities, which is also part of a $55 billion investment.
“The mission of Goldman Sachs is to win the president’s trust by achieving domestic political stability and fulfilling Japan’s promises to Trump, including significantly increasing defense spending and investing $55 billion in the United States by January 2029.
The report pointed out that for Takaichi Sanae, it is crucial to establish a strong personal relationship with Trump, which will help reduce the uncertainty of the Japanese economy.
However, the New York Times noted that the $55 billion investment amounted to more than one-tenth of the total Japanese economy, according to the previous Memorandum of Understanding, the Trump administration actually has the power to decide how these funds are used.
Many Japanese officials are concerned that the U.S. may choose projects that are not strategically important for Japan, and that Japan will be forced to choose between two difficulties: either accept or risk being rejected by higher tariffs.