The president said he was optimistic about the future of trade with Tokyo, just before signing a deal on rare earth minerals.
President Donald Trump and Japanese Prime Minister Sanae Takaichi signed a framework agreement on Tuesday to secure the supply of crucial minerals and rare earths through mining and processing, the White House said.
The deal came after Trump met Japan’s first female leader as part of his broader trip to Asia. Both Washington and Tokyo want to strengthen their supply chains for rare earth metals, which are used in everything from renewable energy to electronics and cars.
According to the White House, Japan and the US plan to coordinate investments and policy efforts to develop more diversified and transparent markets for critical minerals and rare earths.
Within six months, Washington and Tokyo plan to identify and finance new mining and processing projects for key materials such as magnets and batteries. The agreement also creates a joint “Rapid Response Group” to detect and deliver vulnerabilities and coordinate emergency deliveries of critical materials.
TRUMP THREATENS ‘HUGE’ CHINA TARIFFS, SEES ‘NO REASON’ TO MEET XI
U.S. President Donald Trump, left, and Sanae Takaichi, Japanese Prime Minister, during a signing ceremony for a document on the implementation of the U.S.-Japan trade deal at the Akasaka Palace state guesthouse in Tokyo, Japan, on Tuesday, Oct. 28, 2025. (Kiyoshi Ota/Pool via REUTERS/Reuters)
Under the agreement, Japan and the US will streamline and accelerate licensing procedures for critical minerals and rare earths.
The agreement also requires both countries to address foreign trade distortions and unfair market practices.
The White House said Washington and Tokyo would explore a joint stockpiling arrangement and work with other partners to strengthen supply chain security.
Both governments said they will work with “like-minded partners,” language seen as a nod to Australia and the European Union, as they try to build a market alternative to China’s near-monopoly on rare earth processing.
US President Donald Trump and Japanese Prime Minister Sanae Takaichi attend a bilateral meeting at Akasaka Palace in Tokyo, Japan, October 28, 2025. (REUTERS/Evelyn Hockstein / Reuters)
China currently dominates the global rare earth market and processes more than 90% of these materials. Beijing has recently stepped up export restrictions, including new items on the control list, and tightened oversight of foreign manufacturers that rely on Chinese materials.
During Tuesday’s meeting with Trump, Japan’s new prime minister called for a “new golden age” in the US-Japan alliance and announced that Japan will donate 250 cherry trees to Washington next year to mark America’s 250th anniversary.
U.S. President Donald Trump, left, and Sanae Takaichi, Japanese Prime Minister, during a signing ceremony for a document on the implementation of the U.S.-Japan trade deal at the Akasaka Palace state guesthouse in Tokyo, Japan, on Tuesday, Oct. 28, 2025. (Kiyoshi Ota/Pool via REUTERS/Reuters)
The US, meanwhile, has just one operational rare earth mine and is busy securing vital minerals for electric vehicles, defense systems and advanced manufacturing.
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As part of his Asia trip, Trump will meet with Chinese President Xi Jinping on Thursday.
