Trump administration said to mull using Japan's $550B fund to spur US manufacturing

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The Trump administration is considering a plan to boost domestic manufacturing by supporting construction of factories and other infrastructure, _The Wall Street Journal_ reported, citing documents and people familiar with the discussions.

Under the plan, the government would use money from a $550B investment fund - pledged [https://seekingalpha.com/news/4470328-trump-says-us-strikes-massive-trade-deal-with-japan-imposes-15-tariffs] by Japan as part of its trade deal with the U.S. - to invest in the development of semiconductors, critical minerals, energy, pharmaceuticals, ships and quantum computing.

The government would grant preferential treatment, including expedited regulatory review, for some of these projects. Leases may also be granted, giving companies access to federal land and water.

Details on implementing the proposal are still being worked out, and plans could change, sources with direct knowledge of the negotiations cautioned.

President Donald Trump and Commerce Secretary Howard Lutnick reportedly discussed building facilities to produce gas turbines and generic pharmaceuticals. They also discussed investing in new nuclear power plants and pipelines.

Meanwhile, Senate Republicans plan to pitch the idea of funneling money from Japan's fund to the government-owned Commodity Credit Corporation, which supports the U.S. farming industry, _WSJ _reported [https://www.wsj.com/politics/policy/trump-manufacturing-federal-land-ef3c02ba].

To note, the exact structure of Japan's $550B investment fund remains unclear, with Tokyo's view differing [https://seekingalpha.com/news/4472586-japan-sees-only-1-2-of-550-billion-us-fund-to-be-investment] slightly from Trump's interpretation of the deal.

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