US President Donald Trump announced the formal launch of a major trade agreement with Japan, marking the beginning of a USD 550 billion Japanese investment commitment in the United States. The announcement included the rollout of the first set of projects worth USD 36 billion, focused on energy infrastructure and critical minerals development across multiple American states.
The initial investments include three large-scale projects: an oil export facility in Texas, a critical minerals processing plant in Georgia, and a natural gas power plant in Ohio. These developments represent the first phase of Japan’s broader investment pledge made under the trade pact, which also reduced US tariffs on Japanese imports to 15 percent. Trump described the agreement as a historic step aimed at revitalising American industry and strengthening domestic manufacturing capacity.
According to the US administration, the Ohio power project alone is valued at about USD 33 billion and is expected to become the largest natural gas-fired generating facility in US history, producing roughly 9.2 gigawatts of electricity annually. Officials said the plant would help meet rising electricity demand, particularly from expanding data centres supporting artificial intelligence technologies. The facility will reportedly be operated by a subsidiary linked to Japanese technology investor SoftBank Group.
Trump credited tariff policies for enabling the agreement, arguing that trade pressure helped secure large-scale foreign investment commitments. He framed the pact as central to his economic strategy, emphasising job creation, energy security and reduced dependence on external supply chains for critical resources.
The announcement came ahead of Japanese Prime Minister Sanae Takaichi’s planned visit to Washington, signalling closer economic coordination between the two allies. The White House characterised the agreement as a long-term strategic partnership designed to boost industrial growth, expand energy production and reinforce economic and national security cooperation between the United States and Japan.
