Japan to launch facility to support $550 billion investment under US trade deal

26/9/2025 16:58

Japan's finance ministry said on Friday that it will set up an investment facility at a state-owned development bank to support a $550 billion investment package agreed in Tokyo's tariff deal with Washington.



Japan and the United States signed a memorandum of understanding on the details of the package this month, stating it would focus on investments in sectors such as chips, metals, pharmaceuticals, energy and shipbuilding to be made by January 2029, which coincides with the end of Donald Trump's presidential term.



Japan's investment package would include equity, loans and loan guarantees from the state-owned Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI).



The new facility at JBIC will provide financial support for overseas expansions by Japanese companies in industries strategically important for Japan's economic security, the ministry said.



The ministry also said it revised regulations on JBIC to expand the scope of its investment in developed countries, including the automotive and pharmaceutical industries.