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Nuclear energy

Foreign Investment Commitments in US Trade Deals: Analyzing the Numbers and Implications

Strategic Insights

— 2 min read

The US trade deals negotiated under President Trump's administration have sparked significant interest in foreign investments in the country. According to the administration, foreign governments and companies have committed to investing as much as $15 trillion to $20 trillion in the US. However, questions remain about the likelihood and feasibility of these investments. A closer look at one of the investments touted by Japan, the construction of Westinghouse's AP1000 nuclear reactors and small modular reactors (SMRs), reveals significant uncertainties and challenges.

Key Takeaways:

  • The aggregate figures mentioned for foreign investments in the US range from $15 trillion to $20 trillion, with varying sources citing different numbers.
  • The investment commitments by Japan, amounting to up to $100 billion, are part of a broader agreement that includes the involvement of Japanese suppliers and operators such as Mitsubishi Heavy Industries, Toshiba Group, and IHI.
  • The Westinghouse investment plan, which includes the construction of new nuclear reactors, has been met with skepticism due to the company's history of bankruptcy and the significant costs associated with nuclear power.
  • The prospects for profitability in this deal are uncertain, with nuclear power being the second-most expensive source of electricity in the US, according to the Department of Energy's latest evaluation.
  • The Nuclear Regulatory Commission has not approved any of the designs for small modular reactors developed by the companies involved in this deal.

Statistics:

  • The aggregate figures mentioned for foreign investments in the US range from $15 trillion to $20 trillion.
  • Up to $100 billion of the investment commitments by Japan are part of an agreement that includes the involvement of Japanese suppliers and operators.
  • Westinghouse's investment plan includes the construction of new nuclear reactors, with a projected value of $80 billion.
  • Nuclear power is the second-most expensive source of electricity in the US, with a cost of $177.67 per MWh, according to the Department of Energy's latest evaluation.

Sources:

  • Finance Yahoo, "Donald Trump says $15 trillion of foreign investment is coming to US"
  • Associated Press, "Trump says foreign investment in US will 'explode'"
  • Fox News, "Trump visits South Korea, attempts to secure billions in investment"
  • Ministry of Foreign Affairs of Japan, "Japan-United States Summit Meeting"
  • Department of Energy, "Electricity Market Conditions"
  • Ars Technica, "Westinghouse claims $80 billion of new nuclear reactors will be built in US"
  • Westinghouse, "Strategic Partnership Press Release"
  • Westinghouse, "Claimed 80 Billion Investment"
  • Reuters, "How two cutting-edge US nuclear projects bankrupted Westinghouse"
  • Energy Information Administration, "AEO2025 LCOE Report"

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