Japan Grants Trump Control Over $550bn Investment to Avoid Tariffs

Japan and the United States, under President Donald Trump, have reached a unique agreement allowing Trump to control how $550 billion of Japanese capital is invested in the U.S. as part of a broader trade deal to reduce tariffs on Japanese exports. Japan must fund projects chosen by Trump within 45 days to avoid tariffs rising back to 25 percent, with the current tariff rate lowered to 15 percent. The investment committee, chaired by U.S. Commerce Secretary Howard Lutnick, will recommend projects, but Trump has the final decision, and profits initially split evenly will later heavily favor the U.S. The deal also includes increased Japanese purchases of U.S. agricultural goods and aims to boost U.S. manufacturing and job creation. However, many of Trump's tariffs are tied up in legal battles after courts ruled most of them illegal, prompting Trump to seek expedited Supreme Court review and warning that trade deals, including with Japan, may be unwound if his tariff authority is not upheld. The administration is preparing backup plans and selectively sparing companies like Apple from some semiconductor tariffs based on investment promises.