Japan’s first installment of the 550 billion “big gift” to Trump is about to be delivered, with the Ministry of Finance allocating 46 billion to support investment and nuclear power.

Japan’s first installment of the 550 billion “big gift” to Trump is about to be delivered, with the Ministry of Finance allocating 46 billion to support investment and nuclear power.

Trump Administration to Receive $550 Billion “Big Gift” from Japan

The Trump administration is about to start receiving a $550 billion “big gift” from Japan. Recent reports show that Japan has begun to fulfill its investment commitments, with the government preparing the first round of funding. This investment plan is the core content of this year’s US-Japan trade agreement, aimed at helping Japan avoid higher tariff threats from the Trump administration.

According to Japanese media reports on Saturday, the Japanese Ministry of Finance announced on Friday that it will provide 7.18 trillion yen (about $45.9 billion) in low-interest loans and guarantees through the Japan Bank for International Cooperation (JBIC), with some of the funds used to support the investment plan in the US. This fund is part of the Ministry of Finance’s FY2026 investment and financing plan, which also includes financing for nuclear power plants and investments in Japan’s power grid.

Prior to the Ministry of Finance’s announcement, on Wednesday the Japanese Foreign Ministry issued a statement saying that Japan’s chief trade negotiator and Minister of Economy, Trade and Industry, Akazawa Ryosei, US Secretary of Commerce Lutnick, and US Secretary of Energy Wright attended a working group meeting on Tuesday evening. Both sides agreed to speed up preparations to announce the first project under the strategic investment plan as soon as possible. The meeting lasted about two hours.

According to the previous agreement, if Japan fails to provide funding for the project within 45 days of Trump’s decision, it may face higher tariffs. Earlier this year, Trump threatened to impose a 25% tariff on Japanese goods, but after Japan agreed to increase US investment through the $550 billion mechanism, most tariffs on Japanese goods were reduced to 15%. According to CCTV News, the US and Japan reached an agreement on the tariff issue in July, with the US imposing a 15% tariff on Japanese goods.

Investment Focuses on Energy Sector

According to WallstreetCN, based on the October 28 project list released by Japan’s Ministry of Economy, Trade and Industry, energy-related projects are the highlight of this $550 billion investment.

The list covers 21 strategic projects in energy, AI infrastructure, and key mineral procurement, with individual project investments ranging from $350 million to $100 billion.

Nuclear energy investment accounts for the largest portion. Westinghouse, together with Mitsubushi Heavy Industries, Toshiba, and other Japanese companies, is cooperating in the construction of AP1000 nuclear reactors and small modular reactors, with a total investment of $100 billion. Another small modular reactor project led by GE Vernova and Hitachi also totals $100 billion.

Other energy projects include: Bechtel providing project management services for large-scale power and industrial infrastructure, with amounts up to $25 billion; GE Vernova, in partnership with Japanese companies, supplying gas turbines and other large-scale power equipment, also up to $25 billion; Softbank Group delivering large-scale power infrastructure engineering services, up to $25 billion each.

According to Asahi Shimbun calculations, the 21 projects listed are valued at over $400 billion, and participating Japanese companies will receive financing and loan guarantees from Japanese government-backed financial institutions.

The US Holds Final Decision-Making Power

According to the Memorandum of Understanding signed between the US and Japan in September this year, investments will be screened by an Investment Committee led by Lutnick. Although Japan will participate in the evaluation process via a bilateral committee, the US will ultimately decide which projects receive funding. If Japan fails to fund investment projects chosen by the US, Trump retains the option to restore higher tariffs.

Investments will focus on areas such as semiconductors, pharmaceuticals, metals, key minerals, shipbuilding, energy, AI, and quantum computing, and are to be completed by January 19, 2029, the last day of Trump’s term. The memorandum stipulates that before Japan recoups its investments, profits will be split equally between the US and Japan; thereafter, the US will continue to receive 90% of the profits.

In an interview with Japanese media on October 27, Lutnick stated that the investment framework will focus on “areas vital to national security and virtually risk-free,” with more than half likely to be devoted to power and energy development. When meeting with executives from several Japanese companies on the list the next day, he said, “You are just the beginning—you are the foundation.”

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