US President Donald Trump claims that Japan has agreed to invest $550 billion in the US at his direction, but experts say the terms are still being negotiated and its impact is uncertain.
The claim was made as part of a new trade framework announced by the Trump administration, which aims to lower tariffs on autos. According to Trump, 90% of any profits from the investment would go to the US, with the remaining 10% going to Japan. However, a White House official said that nothing has been formalized in writing and the terms are still being discussed.
The $550 billion figure represents over 10% of Japan’s entire gross domestic product and is significant, but its exact impact on the economy is unclear. Japanese trade negotiator Ryosei Akazawa said that a written joint statement is necessary to avoid misunderstandings, and he denies any agreement to quarterly reviews that would increase tariffs.
The Trump administration has claimed to have brought trillions of dollars in new investment into the US, but its economic impact remains to be seen. The framework also enables the president to say that other countries are agreeing to tax their goods, even if some of the cost is passed on to consumers.
Trump’s commerce secretary, Howard Lutnick, said that Japan is willing to finance any projects that Trump wants to build, describing it as “pretty amazing.” However, the deal remains uncertain, and its terms will likely be revealed in the coming days.
Source: https://apnews.com/article/trump-japan-trade-tariffs-550-billion-investment-fund-79c27b3db1c22c513bcf487c00a5a627