Fashion
Japan to back $550-bn investment package under US tariff deal
The package, detailed in a recent memorandum of understanding (MoU), focuses on sectors like metals, pharmaceuticals, energy, shipbuilding, artificial intelligence, quantum computing and chips, with investments planned till January 2029.
Japan will set up an investment facility at the state-owned Japan Bank for International Cooperation to back a $550-billion investment package under its tariff deal with the US.
President Donald Trump will direct the investments and the projects.
All investments will be made before the conclusion of Trump’s term in office.
The US-Japan MoU offers the latter the choice to opt out of some investments.
President Donald Trump will direct the investments and the projects funded by Japan. All investments will be made before the conclusion of Trump’s term in office.
The MoU document, signed in Washington, DC, by US commerce secretary Howard Lutnick and Ryosei Akazawa, Japan’s minister in charge of economic revitalisation and the country’s chief tariff negotiator, includes a ‘boomerang’ clause, which states that tariffs could be taken back to higher levels if Japan declines to make investments.
Safeguards include a committee and consultation structure that brings some governance to the process, profit-sharing that is more favourable to Japan than originally envisioned and a recognition that Japan does have some authority to pick and choose deals.
“What we’ve achieved with our Japanese partners is an absolute game changer for America’s future—and it’s exactly what the America First trade agenda is all about,” Lutnick wrote in a post on X.
“For the first time ever, President Trump will literally direct these investments for the benefit of America,” he wrote.
As part of the deal reached by the two countries on July 22, Japan committed to invest up to $550 billion into key industries in the United States, but the time frame and precise implementation were left undefined.
The investment committee should consult a committee with representatives from both nations before submitting recommendations to the US President. The body will provide input related to the strategic and legal considerations of the investments, according to US media reports.
Each selected project will be executed by a special-purpose entity managed by the United States or a designee in the capacity of general partner, the MoU noted.
The MoU offers Japan the choice to opt out of particular investments. But before such a decision, it must consult with the United States. By declining to fund certain projects, Japan will lose profit rights until the United States is compensated, and risks new tariffs imposed on its exports.
The MoU also outlined a two-phase distribution plan for profits generated by the projects. Profits are shared 50-50 until both countries have received a baseline entitlement amount, which covers interest, part of the original investment and any carryover. After that, the United States gets 90 per cent of profits and Japan gets 10 per cent.
Fibre2Fashion News Desk (DS)
The increase was driven primarily by higher reinvested earnings and intra-company loans, indicating continued engagement by existing investors with Bangladesh.
Reinvested earnings rose by 318.25 per cent, from $103.79 million in 2024 to $434.10 million in 2025, while intra-company loans increased by 25.68 per cent, from $621.96 million to $781.68 million.
Bangladesh’s net FDI inflows increased by 39.36 per cent last year to $1,770.42 million compared with $1,270.39 million in 2024, the Bangladesh Bank said.
The increase was driven primarily by higher reinvested earnings and intra-company loans.
Reinvested earnings rose by 318.25 per cent, from $103.79 million in 2024 to $434.10 million in 2025, while intra-company loans rose by 25.68 per cent.
Equity capital remained broadly stable, rising by 1.84 per cent, from $544.64 million to $554.64 million in 2025, a release from Bangladesh Investment Development Authority said.
Greenfield project announcements declined by 16 per cent in 2025.
Fibre2Fashion News Desk (DS)
The company’s adjusted EBITDA, excluding Employee Stock Option Plan (ESOP) expenses, rose around 14 per cent YoY to ₹468 crore, while EBITDA margin improved by 20 basis points to around 9.3 per cent. Excluding the reciprocal tariff impact of around ₹36 crore and incremental losses of around ₹13 crore in Bihar and Guatemala, adjusted EBITDA margin stood at around 10.3 per cent.
Pallab Banerjee, managing director, Pearl Global Industries, said: “FY26 marked the company’s second consecutive year of double-digit growth and improved profitability. This performance further solidifies the position of Pearl Global’s diversified operating model and disciplined execution across geographies.”
Pearl Global Industries has reported its highest-ever FY26 revenue of ₹5,025 crore (~$523.93 million), up 11.5 per cent YoY, driven by volume growth and value-added products.
PAT rose 17 per cent to ₹270 crore (~$28.15 million), while Q4 revenue hit ₹1,314 crore (~$137 million).
The company shipped 78.1 million pieces.
Its net worth stands at ₹1,438 crore (~$149.93 million).
He said that geopolitical shifts and Gulf conflicts could lead to energy cost escalation, affecting raw material and logistics costs. However, the company remains prepared to manage these headwinds, supported by its diversified manufacturing base, strong order book, and broad market presence.
The profit after tax (PAT) increased 17 per cent YoY to ₹270 crore (~$28.15 million), the company said in a press release.
On a standalone basis, FY26 revenue stood at ₹1,081 crore, while adjusted EBITDA was ₹67 crore, with EBITDA margin improving by 60 basis points to 6.2 per cent, mainly due to cost restructuring. Standalone PAT rose to ₹69 crore from ₹55 crore in the previous year.
The company’s net worth stood at ₹1,438 crore (~$149.93 million) as of March 31, 2026, compared with ₹1,146 crore a year earlier.
“In FY26, Group delivered another year of resilient performance against a complex geopolitical backdrop. Group achieved, among others, two major milestones this year: revenue crossed INR 5,000 crore mark and installed capacity surpassed 100 million pieces per annum,” said Pulkit Seth, vice-chairman and non-executive director, PGIL.
Seth added that the global apparel industry faced tariff-related disruptions during FY26, with the company’s India operations impacted by tariffs and penal duties imposed by the US. However, he added that Pearl Global leveraged its diversified, multi-country manufacturing presence to mitigate these challenges and deliver double-digit growth.
For the fourth quarter (Q4) of FY26, PGIL posted its highest-ever quarterly revenue of ₹1,314 crore (~$137 million), up 6.9 per cent YoY. Adjusted EBITDA rose 13.7 per cent to ₹135 crore, with margin at 10.3 per cent, the highest EBITDA margin recorded by the company in any quarter. PAT for the quarter stood at ₹81 crore, up 24.6 per cent YoY, PGIL said in a press release.
Standalone revenue during the quarter stood at ₹304 crore, adjusted EBITDA at ₹24 crore, and PAT at ₹14 crore.
PGIL shipped its highest-ever volumes in Q4 FY26 and FY26, at 22 million pieces and 78.1 million pieces respectively. Its annual installed capacity crossed 100 million pieces, reaching around 101 million pieces.
The ongoing capex in Bangladesh is expected to be completed by the first half of FY27 and will add around 6-7 million pieces of capacity during the year.
Fibre2Fashion News Desk (SG)
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