According to informed sources, the United States and Japan are close to finalizing the first three projects to be funded by Tokyo's $550 billion investment fund targeting the U.S. market.

The sources indicated that the three projects shortlisted during the evaluation process include a data center infrastructure initiative led by Softbank Group Corp, a deepwater oil terminal in the Gulf of Mexico, and a synthetic diamond project for semiconductor applications. Softbank Group Corp did not immediately respond to requests for comment.

The outcome of discussions between U.S. Commerce Secretary Lutnick and Japan's Minister of Economy, Trade and Industry, Ryosei Akazawa, will determine whether a final agreement can be reached. Japan's Ministry of Economy, Trade and Industry stated that the two officials are scheduled to meet in Washington on Thursday. There is no guarantee that a decision will be made this week.

Japan's Ministry of Economy, Trade and Industry declined to comment. The U.S. Commerce Department did not respond to requests for comment outside of normal business hours.

The $550 billion fund aims to promote large-scale Japanese investment in key U.S. industries and serves as a central pillar of the tariff agreement reached between the two countries last year. Under that agreement, former President Trump agreed to set tariffs on all Japanese goods exported to the U.S. at 15%, reducing previous auto tariffs. The automotive industry is a critical driver of the Japanese economy.