[Details of the U.S.-Japan Trade Agreement Revealed: $550 Billion Investment to Be Decided by Trump, Japan Given Only 45 Days to Implement]
According to a report by Jinse Finance, citing the Financial Times, an unpublished memorandum signed by the U.S. and Japan on Wednesday reveals that, as part of an agreement to avoid high tariffs, Japan has agreed to let Trump decide the direction of its $550 billion investment in the U.S. This document, which takes effect upon Trump's formal signing of the trade agreement on Thursday, also stipulates that Japan has only 45 days to allocate funds to the projects designated by Trump; otherwise, it will face the reinstatement of high tariffs as a penalty.
This special clause reached between Trump and Japan highlights the extraordinary price U.S. trade partners are paying to secure tariff reductions. Japanese exports to the U.S. originally faced a 25% tariff, but the new agreement reduces the rate to 15%. The memorandum specifies that after the investment committee, chaired by U.S. Commerce Secretary Wilbur Ross, submits potential investment projects, the final decision-making authority rests with Trump. The document also requires the investment committee to prioritize selecting Japanese suppliers to "provide goods and services" for the investment projects whenever possible.