The U.S. and Japan are preparing to begin reviewing energy projects that could become the first investments under a landmark $550 billion joint fund that was a centerpiece of a trade agreement the countries reached in July.
The first meeting of a consultation panel tasked with weighing potential investments is scheduled for Wednesday in Washington, D.C., and is expected to focus on a small number of energy projects, according to people familiar with the matter who spoke on condition of anonymity because the discussions are not yet public.
The session marks an early step in a broader process for approving projects that could tap the fund.
Under the agreement, an investment committee chaired by Commerce Secretary Howard Lutnick will review proposals and make recommendations to President Donald Trump, who retains final authority over which projects move forward.
The consultation committee is expected to meet again next week, and projects could be presented to Trump early next year. Details on the projects, including their specific sectors and which U.S. states might be involved, were not immediately known.
The investment fund was a central element of the U.S.-Japan framework agreement aimed at easing Trump's tariffs on Japanese exports.
Under the deal, U.S. duties on Japanese automobiles were reduced to 15%, with most other covered goods subject to the same rate.
The countries initially discussed a $400 billion investment commitment before Trump pressed Tokyo to agree to the higher $550 billion figure.
Under a memorandum of understanding governing the fund, Japan is expected to finance projects selected by the president following consultations between the governments.
If Tokyo ultimately declines to fund a proposed investment, the agreement allows the U.S. to adjust how returns are allocated and, in some cases, to impose higher tariffs on Japanese imports, potentially putting the broader accord at risk.
The energy projects are the first initiatives to formally advance toward selection.
The agreement allows investments to be made through Jan. 19, 2029, the final full day of Trump's second term, though there is no requirement that funds be fully deployed by that date.
"I'd be very surprised if the full $550 billion ever becomes reality," said Paul Nadeau, a professor at Temple University's Japan campus and a visiting research fellow at the Institute of Geoeconomics.
U.S. and Japanese officials have described the fund in different terms, emphasizing different elements of the agreement.
Trump has referred to the money as a "signing bonus," saying, "That's our money. It's our money to invest as we like."
Japanese officials have said the deal must be implemented in a way that does not violate the laws of either country.
Beyond energy, the fund is intended to support investments tied to economic and national security priorities, including semiconductors, pharmaceuticals, metals, critical minerals, shipbuilding, artificial intelligence, and quantum computing.
Michael Katz ✉
Michael Katz is a Newsmax reporter with more than 30 years of experience reporting and editing on news, culture, and politics.
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