Japan’s tariff negotiator denies Trump’s ‘complete discretion’ over Tokyo’s $550B investment in US

After returning from the US, the economic revitalization minister, Ryosei Akazawa, told reporters at Tokyo’s Haneda Airport that Trump will pick from projects proposed by a US investment committee, based on discussions with a Japan-US consultation committee.

His remarks followed US Commerce Secretary Howard Lutnick’s comments on CNBC Friday that Trump has “complete discretion” over the investments. Akazawa stressed Japan will take part in project selection and urged the media to avoid “vague” reporting.

During Akazawa’s recent trip, the two governments issued a joint statement and memorandum on Japanese investment and loans, after which Trump signed an executive order implementing the deal, including reciprocal tariff cuts and lower auto levies.

Akazawa had said Friday that a trade agreement reached between his country and the US will take effect within two weeks.

Trump signed an executive order Thursday to implement a sweeping trade agreement with Japan, including establishing a baseline 15% tariff on nearly all Japanese imports, including cars, in which the tariff was reduced from 27.5%.

The deal also cleared the way for what the White House described as an agreement “unlike any other in American history” involving $550 billion in Japanese investment in US projects.

Under the trade deal, a new Japan-US panel will also be formed to consult on investment projects.