UK Media: Cracks Emerge in US-Japan Trade Deal as Japan Denies US 90% Profit-Sharing Plan

According to a report by Jinse Finance citing the Financial Times, there are significant differences in interpretation between the US and Japan regarding the details of a previously reached agreement. On Friday, Tokyo stated that for the US to receive 90% of the joint investment profits, it must assume a corresponding proportion of risk and financing responsibilities. Previously, US Commerce Secretary Lutnick claimed that under the latest tariff agreement framework, Japan would provide funding to support $550 billion in investments in US strategic industries, with the US receiving 90% of the profits. However, a slide released by Japan’s Cabinet Office on Friday clearly indicated that profit distribution “will be determined based on each party’s level of contribution and risk assumption.” Japanese officials pointed out that no written agreement or legally binding contract has been reached between the two sides regarding this investment. According to sources familiar with the matter, the agreement was hastily reached during a meeting lasting only 70 minutes on Tuesday between Japan’s chief negotiator Ryo Masa Akazawa and the US side. The Trump team is reportedly eager to finalize the deal out of concern that if Japanese Prime Minister Shigeru Ishiba steps down due to political instability, renegotiations would be necessary.