Trump Announces $550 Billion US-Japan Trade Deal and Major Investments

US President Donald Trump has announced the formal launch of a sweeping $550 billion trade agreement between the United States and Japan, marking a significant step in strengthening economic ties between the two allies. The announcement included the first wave of Japanese-financed investments worth $36 billion, focusing on energy infrastructure and critical mineral projects across key US states.

The initial projects include the development of an oil export facility in Texas, a critical minerals processing plant in Georgia, and a large natural gas power plant in Ohio. These investments represent the first phase of Japan’s broader commitment under the trade pact and signal long-term industrial cooperation between the two countries.

According to the announcement, the deal follows tariff adjustments that lowered US duties on Japanese imports to 15%, helping facilitate the investment pledge. Trump described the agreement as historic and said it would play a central role in revitalising the American industrial base.

The energy projects are expected to strengthen domestic supply chains and support the growing demand for power and industrial materials. The Ohio natural gas power facility, valued at approximately $33 billion, is projected to become the largest gas-fired power generation plant in US history. It is expected to produce 9.2 gigawatts of electricity annually — enough to power households across the state.

Officials said the facility will be operated by a subsidiary of Japanese technology investor SoftBank Group and will help meet rising electricity demand driven by expanding data centres and artificial intelligence infrastructure.

The investment in critical minerals processing in Georgia aims to strengthen supply chains for essential materials used in advanced manufacturing, clean energy technologies and defence systems. Meanwhile, the Texas oil export facility is expected to boost energy exports and improve energy security.

The announcement comes ahead of Japanese Prime minister Sanae Takaichi’s planned visit to Washington, reflecting deepening economic and strategic coordination between the two nations.

Trump framed the agreement as a cornerstone of his economic agenda, stating that the partnership will generate hundreds of thousands of jobs and strengthen national and economic security. The White House has described the deal as a long-term strategic partnership designed to boost domestic manufacturing and reduce reliance on foreign energy and mineral supplies.

Analysts say the agreement highlights a growing alignment between the US and Japan on industrial resilience, energy security and technology-driven growth. The partnership is expected to play a critical role in strengthening supply chains and supporting emerging industries.

The launch of the trade pact underscores a broader push to enhance economic cooperation while addressing global supply chain vulnerabilities and future energy demands.