The US and Japan struck a new trade pact yesterday, cutting US tariffs on Japanese vehicles from 25% to 15%. In return, Japan pledged $550bn in US investments and a major goods purchase program.
Contained in a factsheet handout from the White House is news that Japanese companies will invest in American commercial and defense shipbuilding, including new yards and modernisation of existing facilities.
Japanese yards have been keen to get onboard Donald Trump’s plans to revitalise American shipbuilding, something their rivals in South Korea have also been fast to join, with Hanwha Ocean and HD Hyundai both forming deals in the US in recent months.
Tokyo and Washington have been discussing establishing a Japan-US Shipbuilding Revitalization Fund in recent months, with Japanese yards pitching to build car carriers and LNG vessels, as well as investing in yards in the US.
The two nations are also discussing naval ships and icebreakers, as well as ways to build a maritime supply chain between Japan and the US that is not dependent on China.