U.S. President Donald Trump announced on the 17th (local time) that, under the U.S.-Japan trade and tariff agreement, the first project for Japan to invest in the United States has been launched, calling it “a very exciting and historic moment for both the United States and Japan.” Japanese Prime Minister Sanae Takaichi responded that the two countries had strengthened ties by building supply chains in strategic sectors.

On Truth Social the same day, President Trump said, “The massive trade deal with Japan has just begun. Japan is now moving forward with the first set of investments under its official, financial commitment to invest $550 billion (about 796 trillion won) in the United States.”

President Trump introduced specific investments, saying, “Today I am pleased to announce three tremendous projects in strategic areas: oil and gas in the great state of Texas, power generation in Ohio, and critical minerals in Georgia.” He added, “The gas-fired power plant in Ohio will be the largest in history, and LNG facilities on the American Gulf will boost exports and drive our nation’s energy dominance. In addition, the critical minerals facilities will end our foolish reliance on foreign sources.”

According to U.S. Commerce Secretary Howard Lutnick, Japan’s investment amounts to $36 billion (about 52 trillion won). President Trump touted his record, saying, “The scale of these projects is so enormous that they would not have been possible without one very special word: ‘tariffs’.” He said the projects “will revitalize America’s industrial base and create hundreds of thousands of great American jobs.”

President Trump had reportedly expressed dissatisfaction that Japan’s investment in the United States was being delayed. In response, the Japanese government dispatched Ryosei Akazawa, the minister of economy, trade and industry who has been in charge of U.S. trade and tariff negotiations since last year, to Washington, D.C., where he met Secretary Lutnick on the 12th and entered negotiations on the first U.S.-investment agenda item. The two did not reach an immediate conclusion at the time, but it appears an agreement between the two countries was reached after additional talks.

Prime Minister Takaichi wrote on her X account that the two countries had aligned on the first project under the ‘Strategic Investment Initiative’ agreed on the basis of the U.S.-Japan tariff consultations, saying it was about “Japan and the United States cooperating to build supply chains and strengthen ties in strategically important areas for economic security such as critical minerals, energy, and AI/data centers.”

She specifically pointed out that synthetic diamond manufacturing was included among the projects, explaining that “both Japan and the United States have a high degree of dependence on a particular country.” The particular country is understood to be China.

Earlier, last summer, Japan pledged to carry out $550 billion in U.S.-bound investment and lending over a three-year period through 2029 in return for the United States lowering reciprocal tariffs and auto tariffs. Under the project selection process, a consultative committee in which working-level officials from both countries confer makes recommendations, and President Trump makes the final decision.

With Japan’s first U.S.-investment destination announced, attention is focusing on what impact this will have on Korea, which has also pledged to invest in the United States. On the 26th of last month, President Trump threatened to re-raise U.S. tariffs from 15% to 25%, citing delays in the passage of Korea’s Special Act on Investment in the United States in the National Assembly. Bloomberg noted that the announcement came as President Trump, voicing displeasure with the pace of implementing the agreement with Korea, a competitor to Japan in automobile manufacturing, threatened to raise tariffs.