(Sept 5): Japanese Trade Minister Ryosei Akazawa said progress was being made on a US$550 billion (RM2.22 trillion) investment initiative set up as part of a trade deal with the US last year. 

“We’ll continue working closely with the US,” Akazawa said. He spoke to reporters in Washington on Friday after meeting with US Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer. 

Akazawa declined to comment in detail on a third tranche of projects under the pact. So far, two rounds of projects have been announced including resource-related deals and power plants. He said that discussions on artificial intelligence and chips will carry “very significant weight”.  

“As the presence of AI and semiconductor industries grows, we’re continuing to develop and implement projects that contribute to mutual benefits,” Akazawa said.

The US$550 billion vehicle was set up to spur a wave of Japanese investment in key US industries and was a central pillar of the tariff deal last year, under which US President Donald Trump agreed to set levies at 15% on Japanese products and lower the duty for automobiles, a critical driver for Japan’s economy. 

The first batch of projects aims to invest US$36 billion in US oil, gas and mineral projects, including a natural gas facility in Ohio. The second group eyes US$73 billion investments for a nuclear power project across Tennessee and Alabama and natural gas power plants in Pennsylvania and Texas. 

The two sides confirmed that no additional tariffs would be imposed on Japan beyond last year’s agreement, Akazawa said.

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