Japan and the United States are set to sign a memorandum of understanding aimed at deepening cooperation in the shipbuilding sector, according to The Yomiuri Shimbun. The agreement, expected to be formalized on Monday, October 27 during a visit by U.S. President Donald Trump to Japan, outlines further details on Japanese investment in U.S. shipbuilding, a key topic in recent trade negotiations. Japan has committed to invest $550 billion in the U.S., with a focus on making shipbuilders more efficient and competitive. The memorandum includes plans to form a joint working group, standardize ship designs and parts, and explore new technologies such as AI to enhance ship design. Japan’s shipbuilders’ association recently announced their readiness to invest $2.3 billion, seeking additional government support to reach a $6.5 billion industry goal by 2035. The initiative is part of Japan’s broader strategy to revitalize its shipbuilding industry and counter China’s dominance, while supporting U.S. naval operations through local repairs and maintenance.