Lutnick says update coming this week on Japan's $550 billion US investment - Reuters

Lutnick says update coming this week on Japan's $550 billion US investment - Reuters

Commerce Secretary Howard Lutnick has confirmed that the United States will make an announcement this week regarding Japan's $550 billion investment in the U.S. [1]. This investment is part of a broader agreement between the two countries, which aims to set a reduced 15% tariff on Japanese goods in exchange for the investment package. The details of this package remain obscure, but it is expected to involve government-backed loans and guarantees.

Lutnick made the announcement during a recent appearance on the Ingraham Angle show on Fox News, stating that the Japanese agreement, valued at $550 billion, will be announced later this week [1]. This announcement comes amidst ongoing negotiations between the two countries, with Japan's top trade negotiator, Ryosei Akazawa, reportedly planning to visit Washington to formalize the deal [1].

The lack of a signed document on the U.S.-Japan trade agreement has previously caused confusion in Tokyo regarding tariff rates. However, Lutnick and U.S. Treasury Secretary Scott Bessent clarified earlier this month that Japanese goods are exempt from overlapping levies. The two officials also promised that Trump will issue another presidential order to lower tariffs on Japanese cars to 15% from 27.5% but did not specify when this would occur [1].

Separately, the Trump administration is considering a plan to reallocate at least $2 billion from the CHIPS Act to fund critical minerals projects and boost Lutnick's influence over the strategic sector [3]. This move would take funds already allocated by Congress for semiconductor research and chip factory construction, aiming to reduce U.S. dependence on China for critical minerals used widely in the electronics and defense industries.

The White House aims to give Lutnick a greater role over funding decisions for critical minerals by giving him oversight of the decision-making process within the administration [3]. This comes after the Pentagon's multibillion-dollar investment in MP Materials sparked questions about the U.S. government's minerals strategy.

In other news, South Korea's Hyundai Motor Group has announced an increase in its U.S. investment to $26 billion, from a previously planned $21 billion [4]. The group will also establish a state-of-the-art robotics facility with an annual capacity of 30,000 units in the U.S.

References:

[1] https://ca.finance.yahoo.com/news/lutnick-says-coming-week-japans-014837749.html
[2] https://finance.yahoo.com/news/lutnick-says-coming-week-japans-014837559.html
[3] https://www.usnews.com/news/top-news/articles/2025-08-21/exclusive-trump-weighs-using-2-billion-in-chips-act-funding-for-critical-minerals-sources-say
[4] https://www.reuters.com/business/autos-transportation/hyundai-motor-group-increases-us-investment-26-billion-2025-08-26/