President Donald Trump announced Tuesday that the first $36 billion in Japanese-funded infrastructure and industrial projects have been officially approved, marking the operational launch of a massive $550 billion investment pact.
Historic Economic Launch
The announcement, delivered via Truth Social, signals the beginning of a multi-year commitment from Tokyo to revitalize the American industrial base. “Japan is now officially, and financially, moving forward with the FIRST set of Investments under its $550 BILLION Dollar Commitment to invest in the United States of America,” Trump wrote.
Japanese Prime Minister Sanae Takaichi praised the milestone, stating the initiatives embody a “mutual benefit” designed to enhance the “economic security” of both nations.
The deal, originally brokered in July 2025, serves as a reciprocal agreement: Japan commits over half a trillion dollars to strategic U.S. sectors in exchange for the Trump administration reducing baseline tariffs on Japanese imports—most notably automobiles—from 25% to 15%.
Strategic Energy, Mineral Projects
U.S. Commerce Secretary Howard Lutnick confirmed the first tranche includes three “tremendous” projects estimated at $36 billion, as per a White House fact sheet. These initiatives are designed to bolster domestic energy and high-tech supply chains:
- Ohio: A $33 billion natural gas-fired power plant in Portsmouth, set to be the largest in U.S. history, generating 9.2 gigawatts of electricity to power homes and AI data centers.
- Texas: A $2.1 billion deep-water crude oil export facility in the Gulf of Mexico, expected to drive $20 billion to $30 billion in annual U.S. exports.
- Georgia: A $600 million synthetic industrial diamond plant aimed at ending “foolish dependence” on foreign sources for materials vital to semiconductors and precision manufacturing.
Power Of Tariffs
Trump credited his administration’s trade policy for the massive capital inflow. “The scale of these projects are so large, and could not be done without one very special word, TARIFFS,” the President stated.
Under the memorandum of understanding, an investment committee chaired by Lutnick recommends projects, while Japan provides feasibility input. The agreement includes a unique profit-sharing structure where the U.S. will eventually retain 90% of generated cash flows after initial costs are recovered.
The launch comes just weeks before Japanese Prime Minister Takaichi is scheduled to visit the White House on March 19.
Blue Chips Gain As Tech Lags In 2026
As of Tuesday’s close, the Dow Jones index rose 2.38% year-to-date, whereas the S&P 500 was 0.22% lower and the Nasdaq Composite index was down 2.83% in 2026.
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, closed mixed on Tuesday. The SPY was up 0.16% at $682.85, while the QQQ declined 0.10% to $601.30.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Evan El-Amin on Shutterstock.com
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