The U.S. and Japan signed a new trade agreement yesterday, reducing the U.S. tariff on Japanese vehicles from 25% to 15%. In return, Japan committed to $550 billion in investment and a major goods procurement program for the U.S.
A fact sheet released by the White House stated that Japanese companies will invest in American commercial and defense shipbuilding, including new shipyards and modernization of existing facilities.
Japanese shipbuilders were eager to participate in Donald Trump’s plans to revitalize American shipbuilding. Their South Korean rivals also quickly joined the initiative, with Hanwha Ocean and HD Hyundai signing deals in the U.S. in recent months.
Tokyo and Washington have been discussing the establishment of a Japan-U.S. Shipbuilding Revitalization Fund in recent months. Japanese shipbuilders plan to invest in U.S. shipyards, in addition to constructing car carriers and LNG vessels.
The two countries are also exploring ways to establish a maritime supply chain between Japan and the U.S. independent of China, involving naval vessels and icebreakers.
