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JPMorgan and other major U.S. banks are in talks to help finance Japan's $550 billion investment pledge in the United States, a move that could help Tokyo deliver on commitments made under a trade deal with the Trump administration, according to two people familiar with the discussions.
The financing is seen as critical because Japanese banks have been reluctant to fund long-term U.S. infrastructure projects, citing the high cost of raising U.S. dollars.
Japan has so far unveiled more than $100 billion in projects under the investment framework agreed to in July 2025. The package helped secure a 15% U.S. tariff on Japanese exports instead of a threatened 25% rate. Japanese officials are now eager to show progress.
Jamie Dimon, chairman and CEO of JP Morgan Chase, listens as President Donald Trump speaks at the United States Army War College in Carlisle, Pa (AP)
The Trump administration has also presented Tokyo with a list of additional projects that could fall under the agreement, according to three sources familiar with the talks.
It remains unclear how much U.S. banks would contribute, which projects they would finance or whether the U.S. government is directly involved. JPMorgan declined to comment.
Japan's Ministry of Economy, Trade and Industry said no decision has been made on U.S. bank participation and that discussions on future projects are continuing.
It remains unclear how much U.S. banks would contribute, which projects they would finance or whether the U.S. government is directly involved. JPMorgan declined to comment (Getty)
Only $2.2 billion has been committed to the first round of projects announced in February. About one-third is being provided by the state-backed Japan Bank for International Cooperation, with the remainder funded by Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group and Mizuho Financial Group.
Those lenders have warned the government that raising long-term U.S. dollar funding is costly, limiting their ability to finance additional projects, according to sources.
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The first investments include an oil export terminal in Texas, an industrial diamond plant in Georgia and a natural gas-fired power plant in Ohio. A second round includes small modular nuclear reactor projects in Tennessee and Alabama, along with natural gas plants in Pennsylvania and Texas.
Sources cautioned that even if major U.S. banks join the effort, infrastructure investments remain risky because they can take decades to generate returns and repay debt.