The first three projects focus on "data centers, crude oil terminals, and synthetic diamonds," with a US-Japan $550 billion investment fund about to launch.

The first three projects focus on "data centers, crude oil terminals, and synthetic diamonds," with a US-Japan $550 billion investment fund about to launch.

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The US and Japan are close to finalizing the first three projects of a $550 billion investment fund, which is a core component of the bilateral trade agreement reached last year.

According to Bloomberg sources on Thursday, the first three shortlisted projects are a data center infrastructure project led by SoftBank, a deep-sea oil terminal project in the Gulf of Mexico, and a synthetic diamond project for semiconductors. US Commerce Secretary Lutnick and Japanese Minister of Economy, Trade and Industry Akazawa Ryo are scheduled to meet in Washington on Thursday, where the final agreements on these projects may be determined. However, according to Japan's Ministry of Trade, a decision is not guaranteed within this week.

According to Xinhua News Agency, US President Trump posted on social media on July 22 that the US has reached a trade agreement with Japan; the original reciprocal tariff rate of 25% will be reduced to 15%, and Japan will invest $550 billion in the US and open up markets for rice and other agricultural products.

The investment fund aims to promote large-scale Japanese investment in key US industries and is the core pillar of last year’s bilateral tariff agreement. Under the agreement terms, Japan must begin funding within 45 working days after a project is determined, otherwise the US may recoup certain benefits or impose higher tariffs again.

This mechanism highlights the direct connection between investment commitments and tariff adjustments. Trump has expressed dissatisfaction with the progress of a similar agreement with South Korea and threatened to raise tariffs on Korean imports again, adding urgency for Japan to fulfill its commitments.

Three Major Projects Target Energy and Semiconductor Fields

According to sources, after the screening process, the three projects on the final candidate list cover digital infrastructure, energy, and key materials for semiconductors. The data center infrastructure project led by SoftBank Group is one of them.

The other two projects are a deep-sea oil terminal in the Gulf of Mexico and a synthetic diamond project for semiconductor manufacturing. These projects fit the investment framework set during Trump's visit to Japan last year, which covered energy, artificial intelligence, and key minerals, involving companies such as SoftBank, Westinghouse Electric, and Toshiba.

At that time, the estimated costs of potential projects ranged from $350 million to $100 billion.

Strict Compliance Mechanisms in Agreement Terms

Under the agreement reached by the US and Japan, once a project is determined, Japan must begin funding within 45 working days. If Japan chooses not to fund a project, the US may recoup certain benefits or impose higher tariffs.

This means Trump may raise tariffs from the current 15% up to the previously threatened level of 25%. Last year’s tariff agreement set all import tariffs on Japanese goods at 15%, reducing the tariff previously imposed on cars, a key driver of Japan’s economy.

The $550 billion fund aims to drive a wave of large-scale Japanese investment in key US industries and help revive American manufacturing.

Trump has expressed dissatisfaction with the progress of a similar agreement with South Korea and threatened to raise tariffs on Korean imports again.

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