Howard Lutnick in Awe as He Details Historic Japan Trade Deal [WATCH]

A new international economic agreement between the United States and Japan is drawing attention for its scale and unprecedented structure, with Cantor Fitzgerald CEO Howard Lutnick confirming that Japan has committed $550 billion in sovereign funds to be directed by President Donald Trump for projects that benefit U.S. national security and key domestic priorities.

In a segment aired by Fox News, Lutnick emphasized that the arrangement is not a traditional foreign investment deal

. Instead, it represents a direct financial commitment from the Japanese government to the United States — guided by Trump’s leadership and priorities.

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“Well, what’s special about the deal with Japan is this is not traditional investment,” Lutnick explained.

“This isn’t like the government saying, oh, Toyota is going to invest in America. This is literally the Government of Japan giving Donald Trump and the American people $550 billion to invest at his direction on things that are important to America and national security.”

The fund, according to Lutnick, would be used for areas deemed critical to U.S. interests — including medical manufacturing, energy development, and infrastructure. He provided examples of where the money could go under Trump’s discretion.

“So I’ll give you an example, generic antibiotics,” Lutnick said.

“We don’t make antibiotics. So Donald Trump could say, let’s go build antibiotics, and we build generic antibiotics. And the Japanese government finances it for us.”

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Other areas cited by Lutnick included energy production and domestic infrastructure initiatives.

“We want to build power and energy nuclear. We want to finish out the Alaska pipeline,” he added.

The driving force behind Japan’s contribution, according to Lutnick, was President Trump’s trade strategy and tariff negotiations during his administration.

“$550 billion at the discretion of Donald Trump. This is the national security sovereign fund given to us because Donald Trump created this amazing tariff structure,” Lutnick said.

“And the Japanese understood they wanted to get down to 15% and Donald Trump drove really when we were negotiating, we were negotiating — Donald Trump was negotiating because I was watching and it was historic.”

.@howardlutnick: “What’s special about the deal with Japan is this is not traditional investment… this is literally the government of Japan giving @POTUS and the American people $550B to invest, at his direction, on things that are important to America and national security.” pic.twitter.com/ZLJYN1vqO7

— Rapid Response 47 (@RapidResponse47) July 24, 2025

The deal represents a rare instance of a foreign ally directly providing a sovereign fund to another government for discretionary use — in this case, under President Trump’s leadership.

No official announcement has yet been released by the Japanese government regarding the internal structure of the sovereign fund, but Lutnick’s statements suggest the agreement is already in motion and strategically aimed at aligning Japan with U.S. national priorities in exchange for favorable trade adjustments.

The development underscores the continued influence of President Trump in global economic affairs and highlights the strength of his negotiation strategies with foreign governments — particularly in securing commitments that prioritize American production, security, and independence.