The President said he was optimistic about the future of trade with Tokyo just before signing the deal on rare earth minerals.
President Donald Trump and Japanese Prime Minister Sanae Takaichi on Tuesday signed a framework agreement to secure the supply of critical minerals and rare earths for mining and processing.
The agreement came after Trump’s meeting with Japan’s first female leader, as part of his extensive tour of Asia. Both Washington and Tokyo are looking to strengthen their supply chains for rare earth commodities, which are used everywhere, from renewable energy to electronics and cars.
According to the White House, Japan and the US Government are coordinating investment efforts and policy efforts to develop diverse and visible markets for precious minerals and rare earths.
Within six months, the Washington and Tokyo Plan to identify and fund new projects and process projects for important items such as magnets and batteries. The agreement also creates a “Rapid Rescur geroard Proep” to identify and enable and coordinate the urgent delivery of critical items.
Trump threatens ‘big’ Chinese tariffs, sees ‘No reason’ to meet with XI
US President Donald Trump, and Sanae Takaichi, the prime minister of Japan, during the signing ceremony of the document on the implementation of the US Japan Trade Deal at Akasaaka Palace Deal at Akasaka Palace Deal at Akasaka Palace Deal at Akasaka Palace Deal at Akasaka Palace Deal at Akasaka Palace Deal in Tokyo State House in Tokyo, Japan, 2025. (Kiyoshi Ota / Pool via Reuters / Reuters)
Under the agreement, Japan and the US will improve and speed up permitting processes for critical minerals and rare earths.
The agreement also enables both countries to deal with foreign currency distortions and unfair market practices.
The White House said Washington and Tokyo will explore a joint arrangement and work with other partners to strengthen security.
Trump calls extraordinary world XI gone ‘bad moment’ – why it’s important to be in national security, China Ties
Both governments said they would coordinate with “like-minded partners,” a language seen as Australia and the European Union, as they try to build an alternative to China’s market closer to China.
US President Donald Trump and Japanese Prime Minister Takaichi attend an indoor meeting at Akasaka Palace in Tokyo, Japan, on October 28, 2025. (Reuters / Evelyn Hockstein / Reuters)
China currently dominates the world’s rare earth market, processing more than 90% of these materials. Beijing has recently stepped up export curbs, including new items on its control list and tightened oversight of foreign manufacturers that depend on Chinese goods.
With Tuesday’s meeting with Trump, the new Prime Minister of Japan called a “golden new year” in the US-Japan Alliance and announced that Japan will build trees for 250 years in Washington next year to mark America’s 250 years.
US President Donald Trump, and Sanae Takaichi, the prime minister of Japan, during the signing ceremony of the document on the implementation of the US Japan Trade Deal at Akasaaka Palace Deal at Akasaka Palace Deal at Akasaka Palace Deal at Akasaka Palace Deal at Akasaka Palace Deal at Akasaka Palace Deal in Tokyo State House in Tokyo, Japan, 2025. (Kiyoshi Ota / Pool via Reuters / Reuters)
The US, at the moment, has only one unlimited amount of land and is scrambling to secure valuable minerals for electric vehicles, defense systems and advanced manufacturing.
Click here to find fox business on the go
As part of his Asia tour, Trump is scheduled to meet with Chinese President Xi Jinping on Thursday.
