Japan Sees Only 1–2% of $550 Billion US Fund as Equity

Tokyo has disclosed that only 1–2% of the US$550 billion economic package it recently agreed with Washington will take the form of direct equity investments, with the rest channelled through loans and loan guarantees arranged by the Japan Bank for International Cooperation and Nippon Export and Investment Insurance. Economy Minister Ryosei Akazawa said the estimate mirrors JBIC’s current mix of equity and lending and emphasised that the framework does not involve transferring the full amount in cash to the United States. Under the terms outlined by Akazawa, 90% of the profits from the equity portion will accrue to the United States and 10% to Japan—an arrangement Japan accepted after originally proposing a 50-50 split. Akazawa added that Japan aims to activate the programme within the current US presidential term and that interest and guarantee fees on the loan component should generate income for Japanese agencies. The accord is expected to lower US tariffs on a broad range of Japanese goods to 15%, potentially saving Japanese exporters about ¥10 trillion (US$68 billion). Tokyo also signalled it will align its own chip and pharmaceutical tariff rates with any concessions the United States grants to third-country partners. Chief Cabinet Secretary Yoshimasa Hayashi said the agreement, together with a parallel US-EU deal, has eased uncertainty surrounding Washington’s trade policy. Akazawa added that the government will step up loan support for domestic companies preparing to tap the new financing framework.