Japan's participation in a $40 billion nuclear power project in the US has faced delays due to concerns about potential liability for nuclear accidents.

Prime Minister Sanae Takaichi agreed in March to fund next-generation small modular reactors in Tennessee and Alabama as part of Tokyo's $550 billion investment pledge to the US.However, Japanese officials remain wary about assuming legal responsibility for accidents, despite US assurances from the Commerce Department.

The US has verbally reassured Japan that state-backed institutions like the Japan Bank for International Cooperation would not bear liability, but this promise lacks legal binding.The dispute highlights broader tensions between the two nations over nuclear safety protocols and international liability frameworks.The project's details are still under negotiation, with regulatory discussions potentially taking months or years to finalize.This standoff reflects deeper geopolitical complexities in bilateral relations and the challenges of international nuclear cooperation.