Japan Signals Bigger Stake in $550 Billion U.S. Investment Deal

Japan’s chief trade negotiator Ryosei Akazawa said the government could raise the equity portion of a planned $550 billion investment vehicle with the United States above the 1–2% previously flagged, provided Washington assumes a larger share of the risk. Speaking on TV Asahi on 13 August, he added that the fund will blend loans, guarantees and direct equity, with returns split 90-10 in America’s favour. Akazawa cautioned that Japan’s participation hinges on the United States keeping its promises and noted that Tokyo would find it “not bad” if President Donald Trump signs the necessary executive order by mid-September. The accord is expected to lock in a 15% tariff on Japanese cars shipped to the U.S., replacing higher duties applied earlier this year. In the same broadcast Akazawa, a close ally from the same Tottori constituency, said he would endorse Prime Minister Shigeru Ishiba should the ruling Liberal Democratic Party bring forward its leadership election. The show of loyalty could strengthen Ishiba’s hand as internal critics weigh mounting a challenge.