Headlines:
- US, Japan prepare for leader summit amid US/Israel war with Iran
- Akazawa visits US to talk investment, while US opens trade cases
- “Iron Fist” exercises deepen integration on amphibious operations
- Eli Lilly to invest $126 million in Japanese pharmaceutical plant
- Japan’s “Global Brain” & US “Techstars” team up on tech startups
Details:
- Preparations are underway for Prime Minister Takaichi’s summit with President Trump in Washington on Mar 19. While the two leaders plan to discuss matters including US tariffs on Japan, Japanese investment in the US under the Japan-US Strategic Investment Initiative, and new agreements on defense information sharing, the US/Israel war with Iran has become a major issue. Iranian threats to civilian shipping through the Strait of Hormuz has shocked oil markets and pushed Japan, the US and others to release oil from their strategic reserves to help ameliorate price hikes. Trump is also urging Japan and others to send naval vessels to help reopen the Strait of Hormuz, in a callback to the US’s 2003 request for Japan to send troops to Iraq. Meanwhile, the US is moving military equipment and US personnel from Japan to the Middle East, including the USS Tripoli Amphibious Ready Group and the 31stMarine Expeditionary Unit.
- METI Minister Akazawa visited the US again from Mar 5 to advance talks with Commerce Secretary Lutnick on a 2nd round of investments worth over $100 billion using Japanese capital under their 2025 Investment deal and discuss new US tariffs following the Supreme Court voiding earlier “reciprocal” tariffs. Akazawa aims to ensure Japan is not worse off under new tariffs. Investment projects discussed include those related to nuclear power generation, copper smelting and refining, and LCD/OLED manufacturing. The US tariff scheme is in flux as the US Trade Representative announced March 12 it is pursuing multiple unfair trade practice investigations against Japan and other US allies and countries related to alleged excess manufacturing production and failure to take action on forced labor abroad.
- From Feb 23 to Mar 9 the US and Japan conducted their “Iron Fist” exercises throughout Japan. The annual exercises included amphibious warfare operations in Okinawa that culminated in the simulated liberation of occupied remote island communities. During the exercises, forces from the Japan Ground Self-Defense Force’s Amphibious Rapid Deployment Brigade and its 3rd Amphibious Rapid Deployment Regiment, and US Marines and Sailors from the 3rd Marine Expeditionary Brigade and the 31st Marine Expeditionary Unit, worked together to integrate their operations and create seamless battlefield cooperation. After the exercises concluded, the 31st MEU was ordered to deploy to the Middle East in support of the US/Israel war with Iran.
- On Mar 12, Eli Lilly announced that it would invest $126 million in its Kobe pharmaceutical manufacturing plant to install a new production line, expand warehouse space, and digitalize operations by 2028. The expansion and modernization of the facility will pave the way for the American drugmaker to boost existing production while allowing the pharmaceutical giant to introduce new drugs to the Japanese market and meet expected demand growth.
- The Japanese VC firm Global Brain and US startup accelerator Techstars announced a new $200 million partnership to invest in promising AI and emerging tech startups, mostly in the US. It is Global Brain’s first partnership with a non-Japanese partner and is an effort to help Japanese capital gain early access to rising American tech startups.
“US-Japan Alliance Digest” is a bi-weekly summary of bilateral and related developments compiled by Sasakawa USA’s “US-Japan NEXT Alliance Initiative.” To receive “Alliance Digest” via email, contact dhinkley@spfusa.org.
