A US-Japan consultation panel held its inaugural meeting to review initial projects under a 550 billion US dollars investment pledge, a central component of the two countries’ trade agreement.

The panel’s first meeting, conducted online, brought together representatives from the US Commerce and Energy departments and Japan’s foreign, trade, and finance ministries, alongside officials from the Japan Bank for International Cooperation and Nippon Export and Investment Insurance, which are expected to provide financing and guarantees for selected projects.

The initiative will channel Japanese investment into US projects on a case-by-case basis, targeting sectors including semiconductors, critical minerals, and energy. During US President Donald Trump’s visit to Japan in October, the two nations identified a preliminary list of projects for the fund.

The consultation panel will forward its recommendations to an investment committee led by US Commerce Secretary Howard Lutnick. The committee’s advice will guide the president in selecting projects for approval. Japan faces the potential reinstatement of higher tariffs if it does not fund approved projects within 45 days of presidential decisions. Earlier this year, Trump raised tariffs on most Japanese goods to 25 percent, later scaling them back to 15 percent following Japan’s investment commitment.

The meeting marks the start of the formal project selection process under the fund, which is intended to support both economic growth and strategic objectives.

The US Commerce Department did not immediately respond to requests for comment.