Japanese Cabinet Minister Involved in Tariff Negotiations Says "Trump, the Master of Hardball Deals"

Only 1~2% of Investment Is Equity

In the Japan-U.S. tariff negotiations, Akazawa Ryosei, Japan’s Minister for Economic Revitalization, who participated in last-minute talks with U.S. President Donald Trump, described Trump as a 'master of hardball deals.'

According to Japanese media on the 27th, Minister Akazawa appeared on NHK the previous night and commented, "If we just sit there without even offering a negotiation card, it’s over. I repeatedly proposed, 'Mr. President, would you like one more?' dozens of times."

He explained that, in connection with Japan's pledge to invest $550 billion (about ₩761 trillion) as part of the agreement for the U.S. to lower reciprocal tariffs on Japan from 25% to 15%—and to reduce auto tariffs from a total of 27.5% to 15%—"only 1~2% of the investment will be in the form of equity."

Mainichi Shimbun reported that the remainder of the Japanese investment will come in the form of loans and loan guarantees from government-affiliated financial institutions.

Regarding the timing for the $550 billion investment, Minister Akazawa said, "It would be ideal if we can do it during President Trump’s term."

Following the agreement, both the U.S. and Japan have been highlighting their domestic achievements, while continuing to differ over the details of Japan’s pledged investment.

U.S. Secretary of Commerce Howard Lutnick said in a media interview, "If the president says, 'Let’s manufacture antibiotics in America,' Japan will fund the project, and we’ll give it to an operator to run. Ninety percent of the profit will go to American taxpayers, and 10% will go to Japan."

However, the Japanese side explained that the agreement is for government-affiliated financial institutions to provide up to $550 billion in equity, loans, and loan guarantees, but only equity— not loans—will be eligible to receive profit distributions.

Eunji Cha, Hankyung.com reporter chachacha@hankyung.com