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Japan Presses Ahead With $36 Billion U.S. Projects After Supreme Court Overturns Trump Tariffs

The White House replaced the invalidated scheme with a temporary 10 percent global tariff under Section 122.

Overview

  • Japan confirmed it will proceed with the first tranche of U.S. investments tied to tariff talks, totaling about $36 billion across projects in Ohio, Texas and Georgia.
  • The U.S. Supreme Court struck down President Donald Trump’s reciprocal global tariffs, ruling his use of a 1977 emergency law unlawful.
  • Following the ruling, the administration imposed a new 10 percent global tariff under the Trade Act of 1974, with a senior official indicating Japan’s rate would be lowered to that level.
  • A senior Japanese official said project selection has begun for a second round and conveyed expectations that both sides uphold the September tariff understanding.
  • Officials and analysts expect limited near-term impact on preparations for Prime Minister Sanae Takaichi’s March 19 White House visit, where the US$550 billion package is set to anchor talks on strategic industries.