Japan targets $550B US investment push, eyes nuclear tranche worth $200B

Japan has pledged $550 billion in US investment as part of a 2025 trade agreement between President Donald Trump and Japanese Prime Minister Sanae Takaichi. The centerpiece of the deal: a nuclear energy buildout that could reshape America’s power grid at a moment when electricity demand is surging thanks to AI data centers. Of that $550 billion total, up to $327 billion is earmarked for energy projects, with nuclear power claiming the lion’s share. In return, tariffs on Japanese goods are capped at 15%. The nuclear math The energy tranche breaks down into two major bets on reactor technology. Up to $100 billion is allocated for Westinghouse AP1000 reactors. Another $100 billion targets small modular reactors built by GE Vernova and Hitachi. The first wave of announced projects totaled roughly $36 billion, with SMRs slated for development in Tennessee and Alabama. The US government itself plans to own up to 10 new large reactors funded through the initiative. Approximately $46 billion in low-interest financing is earmarked through JBIC, the Japan Bank for International Cooperation, via loans and guarantees. Phase two and the AI connection As of March 2026, the initiative has moved i...