U.S. and Japan Poised to Finalize $550 B Investment, Car Tariff Cut

U.S. Commerce Secretary Howard Lutnick said an announcement will be made later this week on a trade accord under which Japan has pledged up to $550 billion in U.S.-bound investment. He told Fox News the funds would support domestic production of semiconductors, antibiotics and rare-earth materials, priorities he said align with President Donald Trump’s effort to reinforce critical supply chains. The two governments have been working since July on a deal that pairs the Japanese investment, backed by government loans and guarantees, with a reduction in U.S. tariffs on Japanese automobiles and other goods to 15 percent from the current 27.5 percent. Although the broad outline was settled, no written document was signed at the time, leaving implementation details unresolved. Japan’s economic revitalization minister and chief tariff negotiator, Ryosei Akazawa, is coordinating a trip to Washington as early as this week to finalize a joint communique, according to Japanese and U.S. media reports. Speaking in Tokyo on Tuesday, Akazawa said the schedule has not been set but added he will press for a presidential order that swiftly enacts the tariff cut and amends the existing executive order governing the levies. Officials in Tokyo and Washington aim to issue the joint document before week-end, providing clarity on the timing of the tariff reduction and the allocation of Japan’s investment. The prospective accord would mark one of the largest single-country investment commitments to the United States and could ease trade frictions ahead of the autumn legislative session in both capitals.