Is Japan’s US$550-billion promise to Trump just a ‘signing bonus’ with strings attached?

byVerified News Online

AdvertisementJapanAsiaEast AsiaIs Japan’s US$550-billion promise to Trump just a ‘signing bonus’ with strings attached?

Tokyo races to fund US projects to keep a 15 per cent tariff rate, as critics question if the ‘signing bonus’ is a gift or a high-interest loan

Reading Time:2 minutesWhy you can trust SCMP

Japanese Prime Minister Sanae Takaichi (left) reacts while speaking to US troops aboard the USS George Washington with US President Donlald Trump in Yokosuka in October 2025. Photo: AP

Agence France-PresseDespite US President Donald Trump having congratulated Japan’s Prime Minister Sanae Takaichi on her recent election triumph, Tokyo is under pressure to deliver on colossal investments promised in the United States.Ahead of the possible announcement of the first projects this week and Takaichi’s scheduled visit to the White House next month, what exactly has Japan pledged, what uncertainties remain, and what is at stake?

What was agreed?

In July, Japan agreed to invest US$550 billion through 2029 “to rebuild and expand core American industries”, the White House said, generating “hundreds of thousands of US jobs”.

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The pledge was in exchange for reducing threatened tariffs of 25 per cent to 15 per cent on Japanese imports. Trump likened it to a “signing bonus” for a baseball player.

What has been announced so far?

Ahead of Trump’s October visit to Japan came a list of “interest” by Japanese firms – from nuclear reactors and AI data centre “chillers” to dredging shipping channels and a fertiliser factory.AdvertisementAdvertisementSelect VoiceSelect Speed0.8×0.9×1.0x1.1×1.2×1.5×1.75x1.00x

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