The comment from a Japanese government official suggests the investment scheme would involve substantial contributions not just from Japan but also from the US government or companies, though the structure of the scheme remains largely unclear.

The White House said earlier this week the US would retain 90% of the profits from the US$550 billion US-bound investment and loans that Japan would make in exchange for lower tariffs on auto and other exports to the US.

The official told a briefing that resulting returns will be split 10% for Japan and 90% for the US “based on the respective levels of contribution and risk borne by each side”.

Japan has said the US investment package includes loans and guarantees from state-owned Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI), to enable Japanese firms to build resilient supply chains in key sectors such as pharmaceuticals and semiconductors.

A law revision in 2023 has expanded the scope of JBIC, making foreign companies key to Japan’s supply chains eligible for loans from the bank.