US, Japan to Consider Projects That May Tap $550 Billion Fund
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Article content(Bloomberg) — The US and Japan are set to review energy projects as the potential debut investments in a landmark $550 billion joint fund that was a centerpiece of their trade deal, according to people familiar with the matter.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe first session of one panel that weighs potential investments is scheduled for Wednesday in Washington, Thursday morning Japan time, the people said. The consultation committee will look at a couple of energy projects at that time, they added on condition of anonymity to discuss matters not yet public. Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentThat meeting is just one step in a broader process to approve projects that might tap into the fund. Subsequent steps include a review by an investment committee, which is chaired by US Commerce Secretary Howard Lutnick. Potential projects would be recommended by that panel to President Donald Trump for a final decision.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentThe initial consultation committee will meet again next week and the projects could be presented to Trump early in 2026, the people said. The projects, their specific sectors and which US states are involved were not immediately clear.Article contentThe investment fund was a crucial element of an accord reached earlier this year between the US and Japan to ease Trump’s tariffs on exports, with the deal reducing US duties to 15% on Japanese cars and setting levies on other goods at the same level. The two countries had initially discussed a $400 billion fund before Trump pressed Tokyo to agree to the higher figure.Article contentEarlier: How Trump Got a $900 Billion Promise From Japan and South KoreaArticle contentJapan may choose to not fund a project, but that would trigger a penalty clause in the memorandum of understanding potentially subjecting Tokyo to higher US tariffs and threatening the overall accord.Article contentThe energy projects are the first initiatives to begin formally advancing to selection, the people said. In their memorandum of understanding, the countries agreed that investments should be made up until Jan. 19, 2029, the last full day of Trump’s current term. Article contentThe fund intends to advance economic and national security interests by investing in semiconductors, pharmaceuticals, metals, critical minerals, shipbuilding, energy, artificial intelligence and quantum computing, according to the memorandum of understanding between the two countries.Article contentTrending The Federal Reserve’s rate cut was a clear signal to investors Investor Expect 'dramatically higher' oil prices in 2026, says Eric Nuttall Oil & Gas Bank of Canada wants to make stablecoins 'good money,' Macklem says Finance CRA's 100-day plan results are not the presents Canadians want or need Taxes Garry Marr: How raiding your TFSA before the end of year could save you thousands Personal Finance Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.
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