In this Supply Chain Byte, Lisa Anderson unpacks the new tariff deals with Japan and the EU, highlighting how these agreements are poised to reshape manufacturing investments in the U.S. As the U.S. finalized these frameworks with key trading partners, the trade team focused on including strategic investments and purchases as a core element of the deals.

The Japan deal includes $550 billion dollars of new capital investments (equity, loans, guarantees) to invest in critical industries such as semiconductors, critical minerals, shipbuilding, pharma, energy, autos etc. These investments will fuel growth in manufacturing, mining, shipbuilding, and supporting industries for artificial intelligence. In addition, Japan agreed to strategic purchases of 100 Boeing aircrafts which will equate to $17 billion annually in addition to liquid natural gas purchases. Similarly, the European Union agreed to purchase $750 billion in U.S. energy imports and invest $600 billion in U.S. companies and infrastructure. South Korea’s agreement includes $350 billion in U.S.-controlled strategic investments in areas such as shipbuilding, semiconductors, clean energy, and biotech. In fact, an exciting aspect of this agreement will help propel U.S. shipbuilding capabilities which are vital to national security and powering global trade.  A large portion of the investment ($150?billion) will be used to help South Korean shipbuilders enter and scale within the U.S. market. 

From boosting U.S.-based production to influencing supplier partnerships, the implications are real — and strategic. Understand what it means for your supply chain in under 2 minutes.

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