Trump announces Japan's $550B investment in US energy and minerals

US President Donald Trump announced Tuesday that Japan is moving forward with the initial phase of its $550 billion investment commitment under the trade deal finalized last July, unveiling three major projects spanning oil, gas, power generation, and critical minerals. In a post on his Truth Social platform, Trump declared, "Our MASSIVE Trade Deal with Japan has just launched," emphasizing the agreement's role in revitalizing American industry and creating hundreds of thousands of jobs.

Details of the Three "Tremendous" Projects

The president identified the projects as an oil and gas development in Texas, a power generation facility in Ohio, and a critical minerals operation in Georgia. Trump described the Ohio gas-fired power plant as "the largest ever built" and noted that the liquefied natural gas facility in the "Gulf of America"—his preferred term for the Gulf of Mexico—would significantly boost US exports and energy dominance. The Georgia critical minerals facility, he argued, would help end America's "foolish" dependence on foreign sources for strategically important materials.

Tariffs as the Key to the Deal

Trump credited his tariff policy as essential to securing Japanese investment, stating these projects "would not be possible without one key tool: tariffs." Under the July agreement, Japan agreed to pay 15% in "reciprocal tariffs," reduced from the previous 25%, while committing to invest $550 billion in the United States. Trump emphasized that the US would retain 90% of the profits from these ventures, framing the arrangement as a historic win for American economic and national security.

Strategic Implications and Domestic Impact

The investment represents a significant infusion of foreign capital into key sectors of the US economy, particularly energy infrastructure and critical minerals supply chains. By securing Japanese participation in Texas LNG exports, Ohio power generation, and Georgia mineral processing, the administration aims to strengthen domestic production capacity while reducing reliance on foreign suppliers, particularly China, for minerals essential to defense and technology industries. Trump concluded, "America is building again. America is producing again. And America is WINNING again," hailing what he termed a "HISTORIC time" for both nations.