Japan has launched the first tranche of a massive investment program in the United States, valued at $36 billion. These funds will be allocated to build the country's largest gas-fired power plant in Ohio and an oil terminal in Texas. The agreement implements a 2025 trade deal that shielded Japanese exports from steep tariffs. Despite enthusiasm from the White House, experts point to a lack of specific technical details in the announced projects.

Billions for Energy

Japan will invest $36 billion in gas, oil, and mineral projects in the USA, implementing a trade agreement from 2025.

Gigantic Power Plant

A gas-fired power plant with a capacity of 9.2 GW will be built in Ohio, although the project surprised local regulators and grid operators.

Infrastructure in Texas

The plan includes the construction of a deep-water oil terminal off the coast of Texas, which will increase American export capacity for the raw material.

Minerals and Diamonds

Part of the funds will go to Georgia for the construction of a diamond factory and projects related to the extraction of critical minerals.

President Donald Trump announced the official start of the implementation of a broad trade agreement with Japan. As part of the first tranche, Tokyo will invest $36 billion in the U.S. economy. The plan's most important element is the construction of a monumental gas-fired power plant in Ohio with a capacity of 9.2 gigawatts, which would make it the largest facility of its kind in the United States. However, this project raises concerns among competitors and market regulators, who were not previously informed about the planned investment. Additionally, a deep-water crude oil export terminal with an annual throughput capacity of up to $30 billion is to be built in Texas. Trade relations between Washington and Tokyo have for decades been based on balancing a close military alliance with economic rivalry, particularly in the automotive and steel sectors. The current agreement harks back to a strategy of easing tensions through tangible investments in American industry, a practice already seen in the 1980s. These investments are a direct result of an agreement from July 2025. At that time, Japan committed to investing a total of $550 billion in the USA in exchange for lowering tariffs from a planned 25% to a level of 15%. Beyond the energy sector, funds will go to Georgia, where a synthetic diamond factory is to be built, and to the development of critical mineral extraction. Critical minerals are essential for battery and modern electronics production, aligning with the strategy of making American supply chains independent from China. However, experts from Bloomberg Business note that the Ohio project still lacks binding agreements with equipment suppliers, and SoftBank Group Corp. and Panasonic Holdings Corp. are only mentioned as potential partners. „Our huge trade deal with Japan has just launched!” — Donald Trump From a market perspective, the project carries the risk of crowding out smaller investors who cannot count on such strong political support. Regulators in Ohio and power grid operators express surprise at the project's scale, pointing to the need for lengthy approval procedures. Nevertheless, for the Trump administration, this is a major public relations success, confirming the effectiveness of tariff pressure policy in relations with key trading partners. The realization of these plans is crucial for the energy stability of the Great Lakes region and for increasing the export capabilities of the American oil sector. Value of projects in the first tranche: Ohio Power Plant: 33, Texas Terminal: 2, Other (minerals/diamonds): 1 36 bn USD — is the value of the first tranche of Japanese investments Changes in tariff rates for Japan: Base rate after agreement: 25% → 15%; Investment commitments: 0 USD → 550 bn USD

Mentioned People

  • Donald Trump — President of the United States, who announced the start of the investments on Truth Social.