Japan Clarifies Profit Terms In Investment Pact Linked To Tariff Cuts

Japan’s government clarified Friday that profits from a $550 billion U.S.-bound investment package, tied to a new tariff agreement, will be split based on contributions from each side, according to Reuters. A Japanese official confirmed the U.S. would retain 90% of returns due to its higher assumed contribution and risk. The package includes loans and guarantees from Japan Bank for International Cooperation and Nippon Export and Investment Insurance. While the White House framed the deal as Japan funding U.S. investments, Japan’s trade negotiator rejected that interpretation, saying private-sector partners will determine final profit allocations. The investments aim to strengthen U.S.-Japan supply chains in semiconductors, pharmaceuticals, steel, and shipbuilding —sectors critical to national security amid growing concerns over reliance on Taiwan.