U.S. will split profits with Tokyo from Japan-funded projects until $550 billion is recouped: Lutnick
News Summary
U.S. Commerce Secretary Howard Lutnick announced that the U.S. will share profits with Japan from projects funded by the Asian country through a tariff deal until Japan recoups its initial $550 billion investment. Japan had agreed to earmark $550 billion for investment in American-based projects selected by the U.S. government as part of a tariff deal, under which Japan will face 15% baseline tariffs and some sector-specific levies. Lutnick stated that profits will initially be split 50/50, and once Japan earns back its $550 billion, the profit breakdown will shift to 90% for the U.S. and 10% for Japan. He noted that Japan would need to borrow money to fund these projects but anticipates no long-term cost to Japanese taxpayers, with Japanese consumers also benefiting from lower tariffs. The U.S. gains funds to bolster domestic manufacturing, such as nuclear power plants and antibiotic production. This announcement comes as many of President Trump's tariffs are in legal limbo, with the Supreme Court agreeing to fast-track an appeal.
Background
In 2025, Donald J. Trump, having been re-elected as U.S. President, continues his administration's
In-Depth AI Insights
What are the underlying strategic motivations for this profit-sharing investment deal beyond the stated economic benefits? - This isn't just about tariffs or investment; it's a strategic maneuver by the Trump administration designed to: - Secure Capital: Access substantial foreign capital for domestic infrastructure and manufacturing projects without direct U.S. taxpayer burden, aligning with