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Japan Ties $550B U.S. Investment to Mutual Benefits
6 Aug
Summary
- Japan's $550B U.S. investment tied to benefits for Japan
- Trump calls investment a "signing bonus" for the U.S.
- Japan negotiator seeks quick implementation of tariff cuts
According to the latest developments, Japan's top tariff negotiator, Ryosei Akazawa, has stated that the promised $550 billion in U.S. investments under the recent trade deal will be contingent on whether they provide benefits for Japan as well. This comes after U.S. President Donald Trump had compared the investment to a "signing bonus" that a baseball player would receive, claiming it as the U.S.'s money to invest as it sees fit.
Akazawa, who is currently visiting Washington, described the financial package as a "commitment to invest in the U.S. where there are benefits for Japan as well," such as building a supply chain in economic security areas. He emphasized that Japan cannot cooperate on anything that does not benefit their country. However, Akazawa acknowledged that Trump will play a significant role in determining which projects to pursue, as the investments will be made within the U.S.
During his visit, Akazawa also plans to press his U.S. counterparts for a quick implementation of the agreed-upon tariff cuts on auto imports from Japan. Additionally, he will seek an explanation from U.S. officials regarding the issue of "stacking," where goods can be affected by multiple tariffs, as this appears to differ from what Japan has heard from the U.S. side.