Japan moved on Friday to clarify the terms of a headline-grabbing $550 billion investment package central to this week’s U.S.–Japan tariff accord, saying returns will be divided according to the capital and risk each party provides rather than under a fixed 90-10 formula favouring Washington. A Japanese government official told reporters that profit sharing could align with a 90% U.S.–10% Japan split only if the United States supplies most of the financing and assumes proportionate risk. The statement contrasts with White House comments earlier in the week that President Donald Trump would steer the fund’s investments and that the U.S. Treasury would keep nine-tenths of the gains. Tokyo also disclosed that the scheme would rely on loans and guarantees from state lenders Japan Bank for International Cooperation and Nippon Export and Investment Insurance, with private companies expected to co-invest. No legally binding contract has yet been drafted, Japanese officials said, and details such as project selection, governance and timelines remain unresolved. The investment pledge was the inducement Japan offered in exchange for Washington cutting its new baseline tariff on Japanese autos and other goods to 15%. Divergent interpretations of the fund now risk complicating implementation of what the White House has billed as the ‘largest trade deal in history’ and a possible template for similar pacts under consideration with other trading partners.