“Our HUGE trade deal with Japan has just started!” Donald Trump wrote on Truth Social on Tuesday. He recalled that under this agreement, Japan committed to investing in the US in the amount of USD 550 billion. The projects he announced are the first of these investments.
The Japanese are to invest in three projects: oil and gas in Texas, energy generation in Ohio and critical minerals in Georgia. “The scale of these projects is enormous and they could not have happened without one unique word: CUSTOMS,” added the US president.
Japan invests in the USA. Three key projects
A gas power plant is to be opened in Ohio, which, as Trump argued, will be the largest in history. The LNG infrastructure facility to be built in Texas is expected to increase American exports and “increase US energy dominance,” while the critical minerals investment in Georgia will “end the stupid” US dependence on foreign resources, the president said.
Read also: Will there be an “anti-Trump economic bloc”? Canada is in talks
The Trump administration reported that the value of the projects is estimated at $36 billion. It is not known how much of this sum Japan will cover and on what terms, notes Reuters.
Howard Lutnick, Secretary of Commerce, announced that the main investment, a gas power plant worth $33 billion, will be the largest facility of this type in the history of the United States. The Ohio plant is expected to produce 9.2 gigawatts of electricity annually.
Read also: The world's fourth economy will drop to fifth place. India is ahead of it
Lutnick also said that a terminal for the export of crude oil is to be built in Texas. Contrary to Trump's announcement, Lutnick did not mention LNG. He also added that a plant producing synthetic industrial diamonds is to be opened in Georgia. It is intended to fully meet the demand in the USA for these products used, among others, for the production of semiconductors. Currently, the US relies heavily on its supplies from China.
As part of the trade agreement concluded in July last year, Japan agreed to invest USD 550 billion. in American industries, including shipbuilding, in exchange for a reduction in customs tariffs imposed by Washington.
