Japan has agreed to a $550 billion investment initiative in the United States in order to secure reduced tariffs on Japanese exports, according to Japanese officials speaking to NHK.The investment will be channelled through state-owned institutions — the Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI) — and will primarily consist of loans and guarantees. Equity investment will account for just 1–2% of the total package.Japanese negotiator Akazawa clarified that the U.S. retaining 90% of profits, as mentioned by the White House, refers only to the small equity portion, not the entire investment. Japan had initially sought 50% of the equity returns, but officials view the concession as a minor loss compared to the ¥10 trillion (~$68 billion) in tariffs Japan stands to avoid.The package is part of a broader effort to build secure supply chains in critical sectors, with Japan aiming to deploy the funds during Trump’s current term.---Japan and the US reached their deal last week:Investinglive Asia-pacific FX news wrap: Japan Trade Deal Lifts Nikkei, JPY Choppy This article was written by Eamonn Sheridan at investinglive.com.