JPMorgan and other US banks are close to agreeing on financing support for projects under Japan's $550 billion US investment pledge, according to sources familiar with the talks. As reported by The Economic Times, such financing would help Tokyo deliver on commitments made to US President Donald Trump. The move comes as Japanese banks face challenges in funding large dollar-based infrastructure projects due to their yen-based funding base.
Japan has announced over $100 billion worth of projects under the investment scheme, which it struck in July 2025 to secure US tariffs of 15% on Japanese exports. According to The Economic Times, Trump had threatened levies of 25% on most Japanese exports. Tokyo is eager to show progress on its pledges, with Washington sending the Japanese government a list of candidates for additional projects under the investment scheme.
Only $2.2 billion in financing has been committed for the first batch of investments unveiled in February, as reported by The Economic Times. Of this amount, roughly one-third is being provided by state-backed Japan Bank for International Cooperation, with the remainder co-financed by megabanks Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group. The three lenders have told the government that securing long-term dollar funds is expensive and limits their ability to extend credit elsewhere.
The first batch of projects unveiled in February includes an oil export facility in Texas, an industrial diamond plant in Georgia, and a natural gas-fired power plant in Ohio, according to The Economic Times. A second batch announced in March includes plans to build small modular nuclear reactors by GE Vernova Hitachi in Tennessee and Alabama, as well as natural gas-fired power facilities in Pennsylvania and Texas. Sources noted that while US bank participation would help, significant risks remain due to infrastructure projects' potential decades-long timelines for returns.
Takaichi's government has been considering ways to help major domestic banks procure US dollars, with one proposal involving utilising dollars held in the Japanese government's foreign exchange reserves, as reported by The Economic Times. Japan's Ministry of Economy, Trade and Industry stated that no decisions have been made on US bank participation and that any decisions would be made by US banks themselves. The ministry also confirmed that the Japanese government has not yet shortlisted a third batch of candidate projects.
