The government indicated that it would continue the up to $550 billion in investment and financing in the United States agreed in the Japan-US tariff negotiations, regardless of the outcome of the midterm elections. Because the US high-tariff measures are based on presidential orders, the government expects to limit the impact even if the composition of the House and Senate changes.
The government indicated that it would continue the up to $550 billion in investment and financing in the United States agreed in the Japan-US tariff negotiations, and made clear that it intended to maintain cooperation from an economic security perspective regardless of the outcome of the midterm elections.
A Japanese negotiating source said that US high tariffs are measures based on presidential orders, and that the president’s authority will remain even if the composition of the House and Senate changes. Japan therefore plans to take measures to minimize the impact.
An agreement setting the maximum tariff rate on reciprocal tariffs, including automobiles, at 15% was reached last year. Japan is expected to continue selecting investment and financing projects in the United States on the basis of this framework.
One proposal calls for Tokyo Electron to supply manufacturing equipment in which Japan retains an advantage, while Renesas Electronics is considering procuring automotive semiconductors produced at the plant. The aim is to secure a stable supply for US industry and strengthen economic security.