Japan advances U.S. investment package talks but negotiations remain tough

Japan signals steady but hard-fought progress on U.S. investment talks ahead of Takaichi’s Washington visit.

Summary:

• Japan’s trade minister met U.S. Commerce Secretary Lutnick

• Discussed progress on Japan’s US-bound investment package

• Talks described as tough, some distance remains

• Push to accelerate first batch of projects

• Promoted Japanese farm exports, including beef

• Explored joint projects on critical minerals

• Aimed at strengthening ties ahead of PM Takaichi’s U.S. visit

Japan’s Trade Minister Yoji Muto Akazawa said discussions with U.S. Commerce Secretary Howard Lutnick have advanced negotiations over Japan’s proposed U.S.-bound investment package, although significant work remains before agreements are finalised.

Akazawa confirmed that both sides reviewed specific projects forming part of Tokyo’s broader investment commitment to the United States and acknowledged that tangible progress has been made. However, he cautioned that negotiations have been difficult and that some distance still separates the two sides from a complete agreement. While both governments aim to accelerate discussions on a first batch of projects, no timeline was provided for when those initial investments might be formally concluded.

The talks were not limited to capital flows. Akazawa said he also promoted the expansion of Japanese agricultural exports to the U.S., including Japanese beef, signalling Tokyo’s intention to deepen trade ties alongside investment cooperation. Agriculture has often been a sensitive component of bilateral discussions, making its inclusion notable within the broader economic package.

Strategic supply chains were another key focus. The minister highlighted conversations around potential joint initiatives to diversify critical mineral supply chains, an increasingly important policy priority for both countries as they seek to reduce exposure to concentrated global suppliers and strengthen economic security frameworks.

The engagement comes ahead of Prime Minister Sanae Takaichi’s planned visit to Washington, where economic cooperation is expected to feature prominently. Tokyo appears keen to demonstrate measurable progress before the visit, reinforcing its broader strategy of aligning more closely with the United States on strategic industries, investment, and supply chain resilience.

While details remain limited, the tone of the remarks suggests steady forward momentum, even as negotiations over structure, sequencing and scope continue to test both sides.