2025-10-29
Japan Invests $490 Billion in the US to Strengthen Energy and Tech Ties
On October 28, 2025, U.S. Secretary of Commerce Lutnick announced that a total of $490 billion in investment agreements would be signed in Japan, marking one of the largest bilateral investment initiatives in recent years. According to the Trump administration’s statistics, Trump had nearly finalized a target of $550 billion in Japanese investment, as part of a broader trade framework. At a business leaders’ dinner held in Tokyo, Lutnick unveiled commitments totaling up to $490 billion. The agreements span multiple industries and involve major Japanese companies, including SoftBank, signaling a new peak in U.S.-Japan economic and technological cooperation. The signing of this investment plan represents a further strengthening of the U.S.-Japan economic partnership amid global supply chain realignments and geopolitical tensions.
The $490 billion investment agreement marks a historic milestone in U.S.-Japan investment history. Westinghouse Electric and General Electric Vernova are each investing $100 billion in nuclear projects, while SoftBank has pledged $25 billion. Other participants include Toshiba, Mitsubishi Electric, and Kinder Morgan, covering key sectors such as nuclear energy, semiconductors, artificial intelligence, quantum computing, and infrastructure development. The agreements also incorporate government financing and loan guarantee mechanisms to enhance investment security. Furthermore, the agreements complement the U.S.-Japan tariff adjustments reached in July 2025, reducing relevant rates to 15% and further facilitating investment flows and industrial cooperation.
This $490 billion investment agreement not only strengthens U.S.-Japan collaboration in critical technologies and infrastructure but also provides short- and medium-term economic momentum for both countries. In the short term (1–2 months), investment activity and related industry stock prices are expected to remain active, with market sentiment optimistic about bilateral cooperation. In the medium term (within six months), numerous large-scale projects under the agreement will gradually commence, particularly in the semiconductor and energy sectors, enhancing supply chain resilience and international competitiveness. Moreover, this investment plan is expected to attract additional global capital inflows, delivering positive effects on the regional economy.