US engineering giant Bechtel yesterday signed a memorandum of understanding with the US Department of Commerce to help deliver energy, data-centre and other schemes funded by Japan’s pledge to invest $550bn in the US in return for tariffs of 15% instead of President Trump’s threatened 25%.
The signing took place in Tokyo during a ceremony attended by government officials from the US and Japan and American and Japanese business leaders, including Bechtel chairman and chief executive, Brendan Bechtel.
“Before you can unlock computing power and power the next generation of AI, you have to design and build its enabling infrastructure,” said Brendan Bechtel.
Trump held a summit yesterday with new Japanese Prime Minister Sanae Takaichi, who became Japan’s first female prime minister after winning the election last week on 21 October.
The two pledged to begin a new era of cooperation on security and trade.
Under the agreement reached in July, Trump will choose what Japan invests in, and Japan will review and finance the project within 45 business days, reports The New York Times, adding that “failure to do so could result in higher US tariffs”.
After Japan recouped its investment on a scheme, 90% of the profits will go to the US.
Prime Minister Takaichi had expressed disquiet over the deal before the election but has said she would not reopen talks.
She has named Ryosei Akazawa, the minister who conducted the tariff negotiations for Japan, as her economy minister.
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