US President Donald Trump and Japan’s newly elected Prime Minister Sanae Takaichi have signed two new deals, heralding a “new golden age” of alliance between the their countries. While one pertains to US-Japan relations, the other is concerned with rare earths.
Posing with the signed documents, both Trump and Takaichi were snapped in all-smiles moment in Tokyo. The international leaders crossed paths for their bilateral meeting and talks on trade and security, among other issues of concern, on Tuesday. With their meeting taking place at Akasaka Palace, a state guest house in Tokyo, the two crossed paths for the first time, especially since Takaichi, a fellow conservative like Trump, became Japan’s first female prime minister just days ago.
US-Japan relations: About Trump and Takaichi’s trade deals
The first deal is about consolidating cooperation between the two allies, as per the BBC. On the other hand, the critical minerals agreement had to do with supply of rare earths at a time when China, which dominates the sector, as mounted up export controls on the minerals.
On Tuesday, Trump backed Takaichi, saying that he will be there to help Japan in any capacity he can. “I want to just let you know – any time you have any question, any doubt, anything you want, any favors you need, anything I can do to help Japan, we will be there,” he said. While he praised Japan as an “ally at the strongest level,” PM Sanae Takaichi hailed him as a partner in a “new golden age.”
The “golden age” deal refers to the pre-existing deals between the long-standing allies that were signed earlier this year. They highlight both nations’ mutual national interest and investments. Addressing Tuesday’s inked deal, the official documents emphasised the US and Japanese leaders “noted with satisfaction swift and continued efforts by both countries, and confirmed their strong commitment to implementing this GREAT DEAL.”
As a result, the agreement will aid both nations to “strengthen economic security, promote economic growth, and thereby continuously lead to global prosperity.” It further insisted that Trump and Takaichi had consulted with ministers and other officials so that steps could be taken to amplify a “NEW GOLDEN AGE of the ever-growing US-Japan alliance.”
What is the US-Japan rare earths deal about?
Tuesday especially brought forth an occasion when Trump and Takaichi signed a framework to collaborate on the rare earths supply issue. Hitting out against Beijing’s near-monopoly in the critical minerals sector, Trump has recently signed a bunch of deals pertaining to the matter with Malaysia, Thailand and Australia.
Inking a similar collaboration this week, the US and Japan have now decided to come together in terms of employing policies and investment to back the production of rare earths, which are crucial to the production of most electronics, EVs and military equipment.
According to a White House press release issued in the aftermath, America and Japan “intend to support the supply of raw and processed critical minerals and rare earths crucial to the domestic industries of the United States and Japan.” Both participants of the deal “plan to accomplish this through use of economic policy tools and coordinated investment to accelerate development of diversified, liquid, and fair markets for critical minerals and rare earths.”
It also foregrounded that the critical minerals “Framework” will continue as long as both countries work in “good faith and with a cooperative attitude to strengthen the supply chains between the two countries.”
The same will be ensured through the following steps: Securing supply, investment in mining and processing, project selection, financing, investment support, ministerial, permitting, fair competition and pricing mechanisms, asset sales, scrap, third parties, geological mapping, rapid response and stockpiling.
