Japan beat the USA in the third-place game at the 2016 U-20 World Cup. Spain enters the tournament as European champion. Paraguay qualified as South American runner-up to Brazil.
The USA qualified as Concacaf runner-up to Mexico.
"It's great that we now can really focus in on our opposition," U.S. coach Jitka Klimkova said. "All three teams in our group present unique challenges and all 16 teams that qualified for the World Cup are quality. I'm excited about the opportunity to compete in a group that will test our players to find ways to win."
A 16-team tournament, the top two finishers from the four groups advance to the quarterfinals.
USA 2018 U-20 WORLD CUP, Group C games
USA vs. Japan
USA vs. Paraguay
USA vs. Spain
2018 FIFA U-20 Women's World Cup Groups