Trump, Japan’s Takaichi sign deal to secure rare earths supply

US President Donald Trump and Japan’s new Prime Minister, Sanae Takaichi, have signed a framework agreement in Tokyo to secure the supply of critical minerals and rare earths, a move the White House said aims to strengthen supply chains through coordinated investment and fair market practices.

The White House said on Monday that the United States and Japan plan to accomplish this through the use of economic policy tools and joint investment to accelerate the development of diversified, liquid and fair markets for critical minerals and rare earths.

Within six months of the agreement, both nations intend to take measures to support projects that generate end products for delivery to buyers in the United States, Japan and other like-minded nations, it added.

Washington and Tokyo will also work to secure their critical mineral supply chains by addressing what the White House described as "non-market policies and unfair trade practices."

Strong handshake

The deal came as Trump met Takaichi for the first time since she became Japan’s first female leader, holding talks focused on trade, defence and regional security.

Takaichi is expected to offer a package of US investments in a $550 billion deal agreed earlier this year, including shipbuilding, and increased purchases of US soybeans, natural gas and pickup trucks, according to Reuters.

She also plans to inform Trump that she is preparing to nominate him for the Nobel Peace Prize, broadcaster NTV reported, citing government sources.

Those gestures may temper any Trump demands for Tokyo to spend more on defending islands from an increasingly assertive China, which Takaichi sought to head off by pledging last week to fast-track plans to increase defence spending to 2 percent of GDP.

"It's a very strong handshake," Trump said, as the pair posed for photos at the Akasaka Palace in downtown Tokyo before being guided into the ballroom for an honour guard.

Trump praised Japan’s efforts to increase its military capacity and purchase more US defence equipment, while Takaichi hailed his role in securing ceasefires between Cambodia and Thailand, and between Israel and Hamas, as "unprecedented" achievements.

Protests ahead

Before the meeting, many protesters took to the streets of Tokyo to denounce US President Donald Trump’s visit and his meeting with newly elected Japanese Prime Minister Sanae Takaichi.

Protesters held placards criticising Trump and Takaichi and accusing Japan and the United States of fuelling tensions against China.

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Source: TRT