Details of the US-Japan trade agreement exposed: $550 billion investment was decided by Trump, and Japan was only given 45 days to implement it

According to an undisclosed memorandum signed by the US and Japan on Wednesday, Japan has agreed to let Mr. Trump determine the direction in which $550 billion of its capital is invested in the US as part of a deal to avoid steep tariffs. The document, which came into effect when Mr. Trump formally signed the trade deal on Thursday, also stipulates that Japan will only be given 45 days to allocate funds for projects designated by Mr. Trump or face the penalty of reinstating high tariffs. The special terms agreed by Mr. Trump with Japan highlight the extraordinary price paid by US trading partners to secure tariff relief. The new deal reduces the rate to 15 per cent for Japanese exports to the US, which were subject to a 25 per cent tariff. The memo stipulates that Mr. Trump will have the final say on potential investments submitted by an investment committee chaired by Mr. Lutnik, the US commerce secretary, and requires the committee to choose Japanese suppliers where possible to "provide goods and services" for investment projects.