The United States and Japan are nearing a decision on the first three projects to receive funding from Tokyo’s 550 billion US dollars investment vehicle, a central element of last year’s bilateral trade deal, Bloomberg reports.

The projects under consideration include a data center initiative led by SoftBank Group Corp., a deep-sea oil terminal in the Gulf of Mexico, and synthetic diamonds for semiconductor production, according to sources familiar with the matter.

Final approval depends on a meeting between US Commerce Secretary Howard Lutnick and Japanese Trade Minister Ryosei Akazawa in Washington on Thursday. Bloomberg notes that there is no certainty a decision will be reached during this session. Both the US Commerce Department and Japan’s Ministry of Economy, Trade and Industry declined to comment.

The investment fund was designed to encourage Japanese capital in strategic US industries and was a key part of the trade agreement that lowered tariffs on imports from Japan to 15 percent, including automobiles, a sector critical to Japan’s economy. During President Donald Trump’s visit to Japan last year, the two nations outlined a framework of potential projects with estimated costs ranging from 350 million US dollars to 100 billion US dollars, spanning energy, artificial intelligence, and critical minerals, with companies such as SoftBank, Westinghouse, and Toshiba Corp. involved.

According to the bilateral agreement, once a project is selected, Japan has 45 business days to begin funding. If Japan declines to proceed, the US could reclaim certain revenues or reimpose higher tariffs, potentially up to the 25 percent previously threatened by Trump. The arrangement ties investment commitments directly to tariff adjustments, reflecting a mechanism to ensure implementation.

The timing of the negotiations follows Prime Minister Sanae Takaichi’s recent electoral victory in Japan. Bloomberg reports that Takaichi has pledged to prioritise US-Japan economic ties and plans to visit Washington in March. Trump publicly congratulated her win, noting his support for her “Conservative, Peace Through Strength Agenda.”