The Japanese government announced this week that the profits from the $550 billion investment package included in the tariffs agreement with the US will be shared according to the contributions of both sides.
A Japanese government official stated that the investment plan will receive significant contributions not only from Japan but also from the US government and companies, but details about the structure of the plan are not yet clear.
The White House announced this week that the US will receive 90% of the profits from Japan’s investments in the US. The investment will be made in exchange for lower tariffs on automobiles and other export products.
Ten percent of these earnings will go to Japan, and 90% to the US.Japan’s top trade negotiator, Ryosei Akazawa, stated that the US interprets this 90-10 ratio as a demonstration of the US’s commitment to bearing a large share of the contribution and risk.
Akazawa said, “The claims that Japan is only delivering $550 billion are completely false.” He also stressed that the final decision on profit sharing would be left to private sector companies. According to the Japanese government, the investment package to the US includes loans and guarantee services provided by Japan’s state-backed companies JBIC and NEXI. This package will allow Japan to strengthen its supply chains in the US and benefit both countries in sectors critical to national security. The final decision on profit sharing will be left to private sector companies.
