Washington has pressed Tokyo to triple its financial contributions for American troops stationed in Japan to roughly 3 trillion yen, or $19 billion, starting next year, according to reports on Tuesday.
Tokyo is weighing a counteroffer of approximately 1.5 trillion yen, which translates to $9.5 billion. Diplomatic sources familiar with the ongoing negotiations stated that meeting the full demand from Washington presents a financial challenge.
"While 3 trillion yen over five years would be difficult to accept, there is a possibility to pay around 1.5 trillion yen," a diplomatic source said.
The proposed bilateral agreement covers five fiscal years from 2027 through 2031. It replaces the current five-year arrangement worth 1.06 trillion yen, or $6.7 billion, which expires next March.
Formal negotiations between the two allies began in Tokyo during the summer. Another round of talks is scheduled for next week as both governments push to secure a final deal before the end of the year.
The upcoming financial package could incorporate annual spending exceeding 300 billion yen. This funding is earmarked to strengthen American military facilities against potential attacks.
To bolster security, Japanese officials are reviewing measures that include relocating certain base functions underground. Plans also involve reinforcing existing structures to withstand explosions and electromagnetic attacks.
During his first presidential term, Donald Trump similarly pressed Tokyo to shoulder a much larger share of American military costs.
Japan is one of Washington’s oldest military allies in the Asia-Pacific region. The country currently hosts more than 50,000 US military personnel, alongside extensive American bases and vital military assets.
