The U.S.-Japan $550 billion investment agreement has made new progress: the second batch of $73 billion projects has been implemented, with AI and semiconductors becoming the main focus of cooperation.

Japan's Minister of Economy, Trade and Industry, Hiroshi Kajiyama, stated that as part of a trade agreement reached with the United States last year, a $550 billion investment initiative is making progress. "We will continue to work closely with the United States," Kajiyama said. He made these comments to reporters after meeting with U.S. Secretary of Commerce Gina Raimondo and U.S. Trade Representative Katherine Tai in Washington on Friday. Kajiyama declined to comment in detail on the third batch of projects under the agreement. So far, the two sides have announced two batches of projects, including resource-related transactions and power plants. He noted that discussions regarding artificial intelligence (AI) and semiconductors will hold "very significant weight." "As the influence of the AI and semiconductor industries continues to grow, we are moving forward with the development and implementation of projects that contribute to mutually beneficial outcomes," Kajiyama said. This $550 billion investment mechanism aims to stimulate a surge in Japanese investments in key U.S. industries and is a core pillar of last year's tariff agreement. Under the agreement, President Trump agreed to set tariffs on Japanese products at 15% and reduce tariffs on automobilesan industry that is a key driver of the Japanese economy. The first batch of projects aims to invest $36 billion in U.S. oil, gas, and mineral projects, including a gas facility in Ohio. The second batch plans to invest $73 billion in nuclear power projects across Tennessee and Alabama, as well as in gas power plants located in Pennsylvania and Texas. Kajiyama stated that both sides confirmed they would not impose additional tariffs on Japan beyond last year's agreement.