Japan’s $1 trillion investment in America: Defence, AI, and trade take centre stage

In a landmark development, Japan has pledged a massive $1 trillion investment in the United States, covering defense, energy, and strategic industries. The announcement follows high-level talks between U.S. President Donald Trump and Japanese Prime Minister Shigeru Ishiba, focusing on military cooperation and economic collaboration.

Japan has committed to doubling its defense spending by 2027, with Trump confirming, “Japan is committed to double its defense spending by 2027 compared to my first term. They’ve invested a lot of money, $300 billion in goods and services each year. And I’m pleased to say that this week, my administration approved nearly a billion dollars in foreign military sales to Tokyo.”

The discussions also touched upon artificial intelligence, quantum computing, and semiconductor cooperation. Meanwhile, Japan has shifted its focus from acquiring U.S. Steel to making strategic investments. Trump clarified, “Nissan’s going to be doing something very exciting about U.S. Steel. They’ll be looking at an investment rather than a purchase… We didn’t like the idea.”

Additionally, Japan has pledged to increase imports of U.S. liquefied natural gas, strengthening energy security. While Ishiba avoided speculating on future tariffs, both leaders reaffirmed their commitment to deepening economic ties, ensuring a “reciprocal and beneficial” partnership between the two nations.