Trump and Takaichi Forge Rare Earths Deal to Bolster US-Japan Trade Power

US President Donald Trump and Japan's new prime minister Sanae Takaichi have signed a landmark agreement in Tokyo to strengthen cooperation on rare earths and critical minerals, marking a major step in the countries' effort to reduce reliance on China's mineral exports.

The meeting took place at the Akasaka Palace in Tokyo during Trump's three-day visit to Japan. It was Takaichi's first major summit since taking office and served as an opportunity to showcase her diplomatic strength. The deal focuses on securing supply chains for minerals essential to smartphones, electric vehicles, and fighter jets.

Trump praised Takaichi's leadership and expressed admiration for her determination to accelerate Japan's military and industrial growth. 'Everything I know from Shinzo and others, you will be one of the great prime ministers,' he said during their bilateral talks. He also congratulated her for being Japan's first female leader, calling it 'a big deal'.

Intent to Nominate Trump for the Nobel Peace Prize

Takaichi, known for her close ties to the late prime minister Shinzo Abe, pledged to increase defence spending to two per cent of GDP. She also announced her intention to nominate Trump for the Nobel Peace Prize, commending his efforts in brokering ceasefires in Asia and the Middle East.

The new prime minister also confirmed that Japan would deliver a $550 billion investment package that includes shipbuilding partnerships and purchases of US soybeans, natural gas, and pickup trucks. Analysts believe the deal will enhance economic stability while deepening security cooperation.

New Pact Targets China's Grip on Critical Minerals

Under the new rare earths pact, Japan and the United States will work together to identify and develop projects related to mining, magnet production, and battery technology over the next six months. The agreement also includes plans to build strategic mineral reserves to safeguard both nations from future supply disruptions.

Takaichi said the partnership represents a new era of cooperation between the two countries. For Trump, it reinforces his broader goal of boosting US exports while countering China's influence in global trade.

The signing was followed by a working lunch and a meeting with the families of Japanese citizens abducted by North Korea in the 1960s and 1970s. 'The United States is with them all the way,' Trump said, reaffirming his country's support for Japan's efforts to secure their return.

Takaichi's Golf-Themed Gifts Honour Abe's Legacy

During the visit, Takaichi presented Trump with a golf bag signed by Japanese major winner Hideki Matsuyama and a putter once owned by Shinzo Abe, her late mentor and one of Trump's closest allies.

Trump thanked her for the gifts, calling Abe 'a great friend' and expressing sadness over his 2022 assassination. 'He spoke so well of you even before your rise to prime minister,' Trump said.

The gesture symbolised continuity between Abe's legacy and Takaichi's new leadership. It also reflected the long-standing personal connection between Tokyo and Washington, underscored by a mutual respect that extends beyond policy.

A video shared by Trump's aide Margo Martin showed the leaders smiling and chatting as they exchanged the golf-themed presents, highlighting a renewed warmth between the two governments.