In a significant move that could reshape the landscape of global manufacturing, Japanese Prime Minister Shigeru Ishiba, during a summit with U.S. President Donald Trump, announced a staggering $1 trillion investment into the United States. This commitment, made public on February 7, 2025, is not just an economic gesture; it’s a strategic pivot aimed at bolstering bilateral ties and expanding Japanese influence in the American market.

The investment primarily targets three key sectors: steel, automotive, and technology. For U.S. Steel, Japan’s interest shifts from acquisition to investment, following Trump’s directive. This move is expected to lead to significant upgrades in U.S. Steel’s facilities, potentially fostering innovation in steel production techniques and increasing its competitiveness on a global scale.

Japan is an interesting geopolitical example. They have very limited natural resources, therefore almost all of the resources must be imported. From their raw ore required to make steel to their leather for the finishes in their automobiles, most everything they make first comes from someplace else. This is also true of plastic injection molding in Japan and manufacturing sectors, therefore, trade agreements affect the industry tremendously.

As a result, it is critical for Japan to have strong ties to countries who do have those resources. For decades, Japan has been a strategic trading partner with the United States. However, while this partnership was mutually productive, it had never really been made official. The decades were simply marked with tremendous monetary exchange, and exchange of products.

Japan has been recovering from a massive economic recession since the nineties, including manufacturing and plastic injection molding in Japan. In an effort to accomplish this, the Bank of Japan, has maintained a zero, or sub zero interest rate. But the Bank Of Japan has just increased their interest rate for the first time in 17 years.

On March 19, 2024 they increased rates from -0.1% to 0.1%. The BOJ is the last of the major national banks to raise their interest rates. How will this affect the plastic injection molding industry in Japan? The jury is out right now but this significant change is worth noting and watching.