【By Observer Net, Wang Kaiwen】According to a report by Nikkei Asia, U.S. Commerce Secretary Rutherford said on October 27 that the $55 billion investment framework between Japan and the United States will focus on areas "critical to national security and with little risk," such as power and pipelines. He specifically mentioned the Alaska liquefied natural gas (LNG) development project and encouraged Japanese participation.
As U.S. President Trump embarked on his first visit to Japan for his second term, Rutherford arrived in Tokyo ahead of him and was interviewed by the Japan Economic News on the 27th.
Last month, Rutherford and Japanese Minister for Economic Revitalization Akizuki were signing a memorandum of understanding in Washington, detailing the operational details of Japan's $55 billion investment commitment to the U.S. to reduce tariffs, but no specific projects have been determined yet.
According to the memorandum of understanding, the U.S. has established a "Investment Committee" led by Rutherford, responsible for selecting eligible investment projects.
In the interview, Rutherford revealed that 10 to 12 Japanese companies in sectors such as power supply and shipbuilding are exploring opportunities to invest in the U.S., with the first project expected to be confirmed by the end of this year at the earliest.
Rutherford said that the development of U.S. data centers has driven an increase in electricity demand, and Japanese companies will provide gas turbines, transformers, cooling systems, etc., to help expand U.S. power generation capacity.
On September 4 local time, U.S. Commerce Secretary Rutherford and Japanese Chief Trade Negotiator Akizuki were signing a memorandum of understanding. Rutherford's X account
Rutherford said that the $55 billion investment plan by Japan to the U.S. is a "joint investment" for the economic security of the two countries, with more than half of the funds possibly used for power and energy development.
He proposed that the Alaska LNG development project may meet the investment criteria. "This is a huge project. Who can take it? It's certainly Japan," Rutherford said.
Earlier, the Financial Times reported that Trump tried to use tariff pressure to force Japan and South Korea to participate in the Alaska LNG development project, selling natural gas to Asia through a 1,300-kilometer pipeline connecting the northern Alaskan gas fields to the southern Nikiski port.
However, Asian countries such as Japan and South Korea expressed doubts about the economic feasibility and commercial logic of the project, with analysts estimating the project could cost over $60 billion. Japanese business people and South Korean officials revealed that if it weren't for the pressure from the Trump administration, the two countries would not have considered the project at all.
Aside from specific investment projects, Nikkei Asia mentioned on the 28th that the Trump administration is tightening control over work visas, which is one of the main concerns for many companies considering investing in the U.S. Last month, a surprise enforcement operation was conducted by U.S. immigration authorities at a Hyundai Motor factory in Georgia, arresting 475 people, mostly South Koreans.
Rutherford said in the interview that the U.S. may relax related visa policies, "For companies investing in the U.S., they can submit applications to the Department of Commerce in the future, providing lists of people who wish to come to the U.S. to help build factories and train American employees. Then we will issue visas for these companies."
Currently, the U.S. imposes a 15% base tariff on almost all Japanese imports, but the U.S. Department of Commerce is considering introducing industry-specific tariffs on semiconductors, pharmaceuticals, and other products. Rutherford said on the 27th that the U.S. will maintain the 15% tariff on Japanese-made semiconductors and medicines.
However, the report mentioned that although Japan and the U.S. have reached an agreement not to raise tariffs on semiconductors and medicines, the agreement has not been formally determined in the form of a presidential order, which has raised concerns in Tokyo.
On October 28 local time, Trump held talks with Japanese new Prime Minister Taro Kishida. This is Trump's first visit to Japan in six years.
According to Associated Press, the two leaders signed a pact aimed at opening up a "golden era" for the alliance, which is less than one page long, reiterating the previously agreed framework, that the U.S. will impose a 15% tariff on goods imported from Japan, and Japan will establish a $55 billion fund for investments in the U.S.
Subsequently, the two also signed a second agreement, establishing a framework to ensure the supply of critical minerals and rare earths between the U.S. and Japan. According to the report, part of Japan's investment to the U.S. will be used to develop rare earths.
Additionally, Reuters cited sources on the 28th saying that Japan and the U.S. will also sign a memorandum of understanding regarding Japan assisting the U.S. in expanding its shipbuilding capabilities, which is part of the $55 billion investment.
"The mission of Taro Kishida is to win the trust of the president (Trump) by achieving domestic political stability and fulfilling Japan's commitments to Trump, including significantly increasing defense spending and investing $55 billion in the U.S. by January 2029," the Nikkei Asia commented on the 28th.
The report pointed out that for Kishida, building a strong personal relationship with Trump is crucial, which helps reduce economic uncertainty in Japan.
However, the New York Times noted on the 26th that the $55 billion investment amount exceeds one-tenth of Japan's economy. According to the previously agreed memorandum of understanding, the Trump administration actually has the power to decide how these funds are used.
Many Japanese officials are concerned that the U.S. may choose projects that lack strategic significance for Japan, forcing Japan into a dilemma: either accept or risk being subjected to higher tariffs if it refuses.
This article is an exclusive piece by Observer Net, and unauthorized reproduction is prohibited.
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