U.S. Secretary of Commerce Howard Lutnick speaks during an interview with CNBC on the floor at the New York Stock Exchange on Sept.
11, 2025.Brendan McDermid | ReutersCommerce Secretary Howard Lutnick said Thursday that the U.S.
will equally fits with Japan from jects funded by the Asian country through its tariff deal until the initial investment is recouped.Tokyo agreed to earmark $550 billion for investment in American-based jects selected by the U.S.
government as part of a deal finalized last week.
President Donald Trump said Japan will now face 15% baseline tariffs and some sector-specific levies under the two countries' deal.Lutnick said the U.S.
will initially split fits equally on jects funded through Japan's investment. Once Japan earns back its $550 billion, the fit breakdown will shift to the U.S.
receiving 90% and Tokyo taking the remaining 10%, Lutnick said.
"After that, it's 90/10, in favor of America," Lutnick said Thursday on CNBC's "Squawk on the Street."Lutnick said an investment committee will suggest jects to fund through Japan's cash pile.After receiving Trump's apval, the U.S.
will hire construction workers and send a "capital call" to Japan, he said, acknowledging that Japan has to "blow up their balance sheet" and borrow money to fund the jects.But Lutnick said it shouldn't ultimately cost Japanese taxpayers anything in the long run, assuming they get the invested money back from the jects.
On top of that, Japanese consumers will benefit from a lower tariff rate, he said."For their country's perspective, it's a good deal," Lutnick said.The U.S., meanwhile, gets funds to p up domestic manufacturing, facilitating jects such as nu power plants, he said.
Lutnick also pointed to antibiotics as a domestic manufacturing priority.Lutnick's s come as many of Trump's tariffs hang in legal limbo.
The Supreme Court has agreed to hear an appeal of a lower court ruling on a fast timeline.
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