US-Japan Alliance Digest Vol 5.06

Download US-Japan Alliance Digest Vol 5.06

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• On March 19-20, Prime Minister Takaichi visited Washington for the first time in office to hold a summit with President Trump. While the trip’s itinerary included new bilateral investment announcements, alliance coordination on China, and the enactment of a critical minerals action plan, the focus of the leaders’ discussion ended up being the ongoing US/Israel war with Iran. While Takaichi was successfully able to fend off Trump’s previous calls for Japan to join the conflict, effectively explaining the country’s constitutional limitations while maintaining a positive tenor, Japan did promise to support a resolution to the conflict that includes reopening the Strait of Hormuz to commercial shipping.
• Prime Minister Takaichi and President Trump also announced the second round of directed Japanese investments in the US under the Strategic Trade and Investment Framework. This time the investments are focused on energy security, with GE Vernova Hitachi planning to invest up to $40 billion to build small modular reactor power plants in Tennessee and Alabama as well as up to $33 billion to build natural gas generation facilities in Pennsylvania and Texas. While the announcements are a useful impetus for these projects, projects remain subject to economic conditions and local regulations. This reflects a push by the US and Japan to promote energy security in the Indo-Pacific, including multiple announcements made at the region-wide Indo-Pacific Energy Security Ministerial and Business Forum hosted by the US and Japan in Tokyo, as well as renewed consideration of expanding energy imports from Alaska.
• The Office of the Director of National Intelligence characterized PM Takaichi’s Nov. 2025 Diet remarks about a Taiwan contingency as marking a “significant shift” in Japan’s position in its Annual Threat Assessment. While Japan rejected this characterization, it reflects a gap between the two allies on China. While Japan has endured months of Chinese economic coercion and intimidation in reaction to Takaichi’s remarks, the US has been prioritizing good relations with China in the leadup to President Trump’s state visit to the country. Japan had hoped to align its views with the US shortly before Trump’s trip, which has now been moved to May 14-15 as a result of the war with Iran.
• The US “GPU-as-a Service” provider GMI Cloud revealed a $12 billion sovereign AI infrastructure investment plan for large-scale physical AI development in Japan on March 17. The initiative will include a major AI Factory project with a hub in Kagoshima prefecture and backing from public and private partners in the US, Japan (e.g., Shin-Etsu Science), and Taiwan (e.g., Wistron company and CBID Capital Group). The initiative’s focus on physical AI will let it contribute to modernizing Japan’s existing industrial expertise in robotics, automobiles, and manufacturing.
• The Japan Maritime Self-Defense Force’s Aegis destroyer JS Chokai became the first Japanese vessel capable of carrying and firing Tomahawk missiles following a refit in the US naval port of San Diego. The vessel is expected to undergo life-fire testing over the summer before returning to Japan around September. The upgrade comes as US Tomahawk missiles are being rapidly depleted by the war with Iran, prompting concerns of a drawdown in East Asia.

“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.

Download US-Japan Alliance Digest Vol 5.06