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US-Japan Announce $40 Billion Nuclear Deal; Trump Cracks Awkward Pearl Harbor Joke

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by Tyler Durden
Thursday, Mar 19, 2026 - 04:26 PM

Update (1226ET): President Donald Trump and Japanese Prime Minister Sanae Takaichi announced a roughly $40 billion collaboration to build advanced small modular nuclear reactors (SMRs) in the United States. The project, involving U.S.-based GE Vernova Inc. and Japan-based Hitachi Ltd., targets sites in Tennessee and Alabama. Officials described it as a step to stabilize electricity prices, expand power generation, and bolster energy security amid global tensions, including the ongoing Iran conflict. The deal builds on last year's U.S.-Japan trade framework and investment commitments, with no major new military pacts emerging from the talks.

The joint press conference following the extended Oval Office meeting - long enough to cancel the planned working lunch - was overshadowed by a viral moment. When asked about the lack of prior coordination with allies on strikes against Iran, Trump turned to Takaichi and quipped: “We went in very hard and we didn’t tell anyone about it. Who knows better about surprise than Japan? Why didn't you tell me about Pearl Harbor?” The remark elicited a mix of nervous laughter, groans, and stunned silence in the room, quickly dominating social media reactions.

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Trump praised Takaichi repeatedly, calling her “a very popular, powerful woman” and “a great woman” after her recent landslide election win. He expressed particular delight when she spoke English directly, noting it was “so nice that we don’t have to sit through that [translation].” Takaichi reciprocated warmly, addressing him as “Donald” and stating, “I firmly believe it is only you, Donald, who can achieve peace across the world,” while condemning Iran's nuclear program and actions in the Strait of Hormuz, though urging de-escalation.

On the security front, Japan held firm on constitutional limits, with Takaichi explaining what her country “can and cannot do” militarily—no warships were committed to Hormuz despite Trump's earlier pushes for allied naval support. Broader discussions covered trade implementation, critical minerals, Indo-Pacific stability, defense cooperation, and countering China.

As noted below on the nuclear deal - GE Vernova and Hitachi, under their existing joint venture GE Vernova Hitachi Nuclear Energy (GVH), will construct BWRX-300 small modular reactors (SMRs) in Tennessee and Alabama, with the projects valued at up to $40 billion. Specific timelines for operation remain under wraps, but the deal highlights accelerating momentum for advanced nuclear technology.

This announcement follows the first tranche of commitments under the fund, which we covered in detail last month. Those initial projects totaled $36 billion and focused on a massive natural gas facility in Ohio, a synthetic diamond plant in Georgia, and a Gulf Coast crude export terminal.

The BWRX-300 units, each roughly 300 MW, are designed for faster factory-built deployment than traditional gigawatt-scale plants. Sites in Tennessee tie into the Tennessee Valley Authority’s Clinch River development, while Alabama locations will partner with private developers. No SMRs currently operate on US grids, but the Trump administration has prioritized regulatory streamlining and federal support to shorten timelines that have historically stretched a decade or more.

We previously covered the US-Japan trade deal and the surrounding agreements back in October of last year when investments worth over $500 billion were pledged by Japan. At the time, the announced value of investments for GE Vernova reactors was $100 billion, so this barely represents even half of that previously announced commitment. It remains unknown where the other $60 billion will be directed to.

There are also outstanding commitments from Japan to support NuScale with up to $25 billion, and Westinghouse with an additional $100 billion. The $100 billion for Westinghouse will most likely be in the form of funding the $80 billion agreement between the US, Cameco, and Brookfield for 10 AP1000s. 

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President Donald Trump is expected to use today's White House meeting with Japanese Prime Minister Sanae Takaichi at 11:15 ET to press Tokyo for naval support in the U.S.-Israeli campaign against Iran - specifically requesting minesweepers and escorts to reopen the Strait of Hormuz, tapping their oil reserves, developing missiles, and in non-Iran news, are expected to announce a $40 billion nuclear power project in the southern US. 

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Despite publicly declaring that the United States “does not need the help of anyone,” Trump has repeatedly lashed out at allies for their lukewarm response and continues to urge partners to clear mines and escort tankers through the critical waterway. The request places Takaichi in an awkward position: Japan relies on the Gulf for 95% of its crude oil imports, yet any deployment of the Maritime Self-Defense Force would clash with the country’s pacifist constitution and deeply unpopular domestic sentiment toward the war.

"Japan gets 95 percent of its crude oil supplies from the Gulf," US Treasury Secretary Scott Bessent told Fox Business on Thursday ahead of the meeting. "I would expect that they would want to ensure its supplies are safe."

Japan's Navy notably has some of the best minesweepers and mine detection capabilities in the world, according to Bessent, who said it puts Tokyo in a perfect position to assist - and that they should release their oil reserves to ease pressure on global oil markets.

“I think we’re going to have a very good discussion with the prime minister,” he said. “President Trump has an excellent relationship with her.”

Trump may also seek Japanese production or co-development of missiles to replenish U.S. stocks depleted by the Iran conflict and Ukraine war. Japan maintains ties with Tehran, potentially offering a diplomatic channel, though past mediation efforts failed, Reuters reports.

Unlike Washington, Tokyo has diplomatic relations with Tehran, creating a potential avenue for diplomacy in any moves to end the war, although past attempts ​by Japan to mediate with Tehran in 2019 were unsuccessful.

Takaichi will also tell Trump that Japan intends to join the "Golden Dome", opens new tab missile defense initiative that ​is meant to detect, track ⁠and potentially counter incoming threats from orbit, two Japanese government sources said. -Reuters

Takaichi, Japan’s first female prime minister, has so far offered no concrete assistance. Speaking to parliament on Monday, she confirmed no official U.S. request had been received but said officials were “checking the scope of possible action within the limits of its constitution.” In public comments before departure, she described the trip as “very difficult” and stressed that her “top priority is the early de-escalation of the situation.”

The visit - Takaichi's first to Washington since taking office - was originally designed to burnish the U.S.-Japan alliance, remind Trump of the China threat ahead of his now-postponed trip to Beijing, and announce a fresh wave of Japanese investment in the United States. Tokyo had already committed $550 billion in projects to win tariff relief; a second tranche of roughly $60-100 billion in critical minerals, energy, and other sectors was expected to be unveiled during the visit.

$40 Billion Reactor Project

Trump and Takaichi are also expected to unveil a major nuclear initiative at the White House today, channeling fresh capital from the US-Japan $550 billion investment fund created under their bilateral trade agreement.

GE Vernova and Hitachi, under their existing joint venture GE Vernova Hitachi Nuclear Energy (GVH), will construct BWRX-300 small modular reactors (SMRs) in Tennessee and Alabama, with the projects valued at up to $40 billion. Specific timelines for operation remain under wraps, but the deal highlights accelerating momentum for advanced nuclear technology.

This announcement follows the first tranche of commitments under the fund, which we covered in detail last month. Those initial projects totaled $36 billion and focused on a massive natural gas facility in Ohio, a synthetic diamond plant in Georgia, and a Gulf Coast crude export terminal.

The BWRX-300 units, each roughly 300 MW, are designed for faster factory-built deployment than traditional gigawatt-scale plants. Sites in Tennessee tie into the Tennessee Valley Authority’s Clinch River development, while Alabama locations will partner with private developers. No SMRs currently operate on US grids, but the Trump administration has prioritized regulatory streamlining and federal support to shorten timelines that have historically stretched a decade or more.

We previously covered the US-Japan trade deal and the surrounding agreements back in October of last year when investments worth over $500 billion were pledged by Japan. At the time, the announced value of investments for GE Vernova reactors was $100 billion, so this barely represents even half of that previously announced commitment. It remains unknown where the other $60 billion will be directed to.

There are also outstanding commitments from Japan to support NuScale with up to $25 billion, and Westinghouse with an additional $100 billion. The $100 billion for Westinghouse will most likely be in the form of funding the $80 billion agreement between the US, Cameco, and Brookfield for 10 AP1000s. 

Exact unit counts, financing splits, and commercial operation dates were not detailed ahead of the formal announcement. Additional energy, minerals, or defense deals could surface during the visit.

So - Iran, Oil, and Nuclear power are on the agenda, officially or not.

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