The key facts

  • Washington demands more than 3 trillion yen ($19 billion) over five years from fiscal year 2027 — nearly triple the current agreement worth 1.06 trillion yen
  • Tokyo is considering a counterproposal of about 1.5 trillion yen ($9.5 billion)
  • A new round of negotiations is expected next week; the goal is an agreement by the end of the year

Washington's demand and Tokyo's response

The administration of US President Donald Trump has demanded that Japan nearly triple its financial contribution for hosting American troops — to more than 3 trillion yen (about $19 billion) over five years starting from fiscal year 2027. This was reported by the Kyodo News agency, citing diplomatic sources familiar with the course of the negotiations; the material is quoted by the Turkish agency Anadolu.

Counterproposal and framework of the agreement

Tokyo, according to Kyodo's sources, considers the demand difficult to fulfill and is considering a counterproposal of about 1.5 trillion yen ($9.5 billion). One diplomatic source noted: «While accepting 3 trillion yen over five years would be difficult, there is room to pay around 1.5 trillion yen.»

What will replace the current agreement

The new agreement is expected to cover fiscal years 2027–2031 and replace the current five-year arrangement worth 1.06 trillion yen ($6.7 billion), which expires in March. Negotiations began in Tokyo in the summer, and the next round is expected next week; both sides aim to reach an agreement by the end of the year. According to the report, the package may include annual spending of over 300 billion yen to strengthen American military facilities against possible attacks; Japan is considering moving base functions underground and reinforcing structures against blasts and electromagnetic attacks.

Context

During his first presidential term, Trump also pressured Tokyo, demanding a larger share of spending on American military infrastructure. Japan, one of Washington's oldest military allies in the Asia-Pacific region, hosts more than 50,000 American service members as well as extensive US bases and military assets. The report does not state the position of officials or the outcome of the negotiations — the issue remains a subject of bargaining, and the final decision is not yet known.