Japan has agreed to provide roughly $550 billion in financing—about ¥80 trillion—to help domestic companies expand production and supply networks overseas in industries deemed critical to economic security, including semiconductors, shipbuilding, pharmaceuticals and steel. The investment forms the centerpiece of a new tariff accord with Washington that cuts duties on Japanese goods in exchange for large-scale capital commitments supporting U.S. and allied industrial capacity. Tokyo intends to channel the money through a mix of loans, guarantees and equity stakes, allowing firms to build plants in Southeast Asia, North America and other markets. Officials are designing a monitoring mechanism to ensure projects align with the security interests of both governments and to track returns, according to Japanese media reports. The initiative coincides with a broader U.S. push to shore up its own shipbuilding base. Senators Tammy Duckworth and Andy Kim are touring yards in South Korea and Japan this week to explore joint ventures that could construct and repair auxiliary vessels for the U.S. Navy, underscoring Washington’s reliance on allied expertise. South Korea has separately floated a $150 billion investment in U.S. yards under similar tariff negotiations. Japanese shipbuilders have voiced concern that high U.S. labor costs and stretched supply chains could limit direct investment, highlighting the challenges Tokyo faces in translating the record-size package into concrete projects. Detailed allocation of the funds is expected to be finalized in coming months.