Japan’s U.S. Investment Dynamic 2026

Understanding the Impact of Japanese Companies on the U.S. Economy

Japan’s U.S. Investment Dynamic: Reflecting on the Economic Contributions Made by Japanese Companies is published to highlight key facts of the significant and growing economic contributions made by Japanese companies to the U.S. in terms of capital investment, employment, U.S. merchandise exports, and R&D spending. It is our hope that this information will deepen your understanding of Japan’s commitment to the U.S. economy.

Full Report: Japan's U.S. Investment Dynamic 2026 ＜PDF＞ (5372KB) 

Video: https://youtu.be/w2pYyi7UNls

KEY FINDINGS OF THE JAPAN-U.S. INVESTMENT DYNAMIC

1. JAPAN'S DIRECT INVESTMENT IN THE UNITED STATES IS THE LARGEST AMONG ALL INVESTOR COUNTRIES IN 2025

Since 1990, Japanese direct investment in the U.S. economy has grown steadily, total investment at the end of 2025 was $827 billion ranking first among all investor countries, ahead of Canada ($820 billion), Germany ($706 billion), and the United Kingdom ($675 billion).

2. JAPAN'S DIRECT INVESTMENT: IMPACTING STATES ACROSS THE UNITED STATES

In 2023, Japan ranked in the top 3 in 49 states for the number of companies among all foreign investor countries. In fact, Japan was the #1 foreign investors in 40 U.S. states.

3. JAPAN IS THE #1 EMPLOYER IN THE U.S. MANUFACTURING SECTOR SINCE 2007

In 2024, a record number of 1,052,000 Americans were employed by Japanese companies in all sectors of the U.S. economy of which more than half are employed in manufacturing. The record number of 596,500 Americans employed in U.S. based manufacturing (2024): an increase of 106.1% since 2010, or 307,100 more employees.

4. JAPAN HAS RANKED FIRST AMONG ALL INVESTOR COUNTRIES IN U.S. MERCHANDISE EXPORTS SINCE THE LATE 1990s

Japanese companies in the U.S. generated $92.8 billion in exports in 2023, a remarkable 4.5% of total U.S. merchandise exports. Since the late 1990’s, Japanese investment in the U.S. has been the leader in generating U.S. merchandise exports among all foreign investors.

5. INNOVATION AND CREATIVITY: THE U.S. ECONOMY IS A R&D PLATFORM FOR JAPANESE COMPANIES

Direct investments from Japan ($14 billion in 2024) have shown a strong upward trend in R&D spending in the United States. Japanese R&D investment contributes to advancing U.S. innovation.

6. COMPARISON OF TOP U.S. FOREIGN INVESTORS

FULL REPORT

For the full report, please CLICK HERE ＜PDF＞ (5372KB) 

Additional reading:
FY2025 JETRO Survey on Business Conditions for Japanese Companies Operating Overseas (North America)