Explainer

Japan and South Korea Agreed to Invest $900 Billion in the US. How Will That Work?

US President Donald Trump and Japanese Prime Minister Sanae Takaichi after signing documents on trade and critical minerals in Tokyo on Oct. 28.Photographer: Kiyoshi Ota/Bloomberg

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By Yoshiaki Nohara and Heesu Lee

March 17, 2026 at 9:56 AM UTC

President Donald Trump last year capped tariffs on Japan and South Korea at 15% in exchange for pledges by the two nations to invest a combined $900 billion in the US. Now Tokyo and Seoul are expected to follow through on those promises, even as many aspects of Trump’s tariff campaign remain unclear.

Japan announced an initial batch of investment projects in the US ahead of Prime Minister Sanae Takaichi’s March 19 meeting with Trump in Washington in a bid to strengthen bilateral ties. South Korea’s parliament in mid-March approved legislation needed to implement its $350 billion investment commitment.