‘New golden age’ of US-Japan alliance: Trump signs trade, rare earths deal with Japan’s first woman PM Sanae Takaichi

US President Donald Trump, on Tuesday, October 28, signed trade and rare earths agreements with Japan’s Prime Minister Sanae Takaichi during his visit to Tokyo on an Asia trip.

Calling for a ‘new golden age’, the US lowered tariffs on Japanese exports to 15%, from 24% before. In exchange, Japan will invest $550 billion in the US to ‘advance economic and security interests’.  

President Trump and Japan’s newly elected Prime Minister, the country’s first female PM, also signed a framework to secure the supply of rare earth minerals. 

The White House earlier said that the US and Japan will address non-market policies and unfair trade practices to secure their critical minerals and rare earths supply chains. 

This comes after China recently placed export licensing restrictions on seven strategic rare earths that are crucial to technology and defence supply chains. Trump and Chinese President Xi Jinping are due to meet on Thursday in South Korea at the APEC summit to discuss key matters, including rare earths and tariffs. 

Earlier this week, Trump signed deals with Malaysia and Thailand to boost production and supply of crucial minerals, following an $8.5 billion US-Australia framework agreement.  

Trump praises Japan’s PM

Trump praised Takaichi, welcoming her pledge to build a ‘new golden era’ of the Japan-US alliance. The White House also said that Takaichi would nominate Trump for the Nobel Peace Prize. Apparently, Pakistan and Cambodia have already nominated Trump for the prize. 

Further, Trump said Japan is a great ally and that he’ll be there to help Japan whenever needed. "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," Trump was quoted by BBC as saying.

Takaichi, a protégé of former prime minister Shinzo Abe who had close ties with Trump, hosted the US President just days after taking office, serving as a preliminary test of her diplomacy and leadership.