US-Japan ties rebooted: New PM Takaichi and Trump sign key economic deal

Japan’s new prime minister, Sanae Takaichi, has pledged to usher in what she called a “golden age” in relations with the United States, as she met President Donald Trump in Tokyo at the start of her first summit with the American leader.

Trump, currently in Japan on the second leg of a week-long Asian tour, and Takaichi swiftly signed an agreement establishing a framework for cooperation on the mining and processing of rare earths and other critical minerals, as per foreign media reports. The move follows China’s recent tightening of export controls on such materials, which are vital for industries ranging from electronics to defence. Trump is due to meet Chinese President Xi Jinping in South Korea later this week for high-stakes discussions amid an ongoing trade war.

According to a White House statement, Washington and Tokyo will work together through joint economic policies and coordinated investment to accelerate the creation of diversified, transparent, and equitable markets for critical minerals and rare earths. The aim, the statement said, is “to assist both countries in achieving resilience and security of critical minerals and rare earths supply chains.”

Before their private talks, Takaichi said she hoped to achieve “a new golden age of the Japan–US alliance, where both Japan and the United States will become stronger and more prosperous.” Prior to the meeting, the two leaders shared a lighter moment, watching part of a World Series baseball game featuring Japanese star Shohei Ohtani on live television.

The White House later announced that Takaichi intended to nominate Trump for the Nobel Peace Prize, an honour he has long sought since returning to office. Trump has claimed credit for ending several global conflicts, though analysts have questioned the extent of his role.

Takaichi, who became Japan’s first female prime minister only last week, congratulated Trump on his part in brokering ceasefires in Gaza and between Thailand and Cambodia, which have been involved in a protracted border dispute.

During their remarks to the press, both leaders invoked the memory of former Prime Minister Shinzo Abe, with whom Trump had developed a close personal bond during his first term. Takaichi, a protégé of Abe who shares his hardline stance toward China’s growing military assertiveness, thanked Trump for his “enduring friendship” with Abe, who was assassinated in 2022.

The meeting took place on the same day as the first court hearing in the trial of the man accused of killing Abe with a homemade firearm. Trump called Abe “a great friend” and recalled that Abe had “spoken so well” of Takaichi long before she rose to the country’s top post.

The leaders’ discussions focused on trade and security, coming months after former Prime Minister Shigeru Ishiba had secured tariff reductions from the White House in exchange for major Japanese investments in the US economy. Japan is also preparing to expand purchases of American goods—including soybeans, pickup trucks, and other products—in hopes of further tariff relief.

In a joint statement issued on October 28, Trump and Takaichi reaffirmed their “strong commitment to implementing this great deal,” saying the agreement would “strengthen economic security, promote economic growth, and continuously contribute to global prosperity.”

Takaichi described the Japan–US security partnership as “the greatest alliance in the world,” emphasising Japan’s readiness to contribute to “world peace and stability.”

Trump, who met Emperor Naruhito for the second time at the Imperial Palace shortly after his arrival in Japan on Monday evening, praised Japan’s recent purchases of US-made defence equipment and said the two nations would engage in “a lot of trade.”

Congratulating Takaichi on becoming Japan’s first female prime minister, Trump called it a “big deal” and an “honour” to meet her so soon after she took office. Referencing Abe again, he predicted she would become one of Japan’s “greatest prime ministers.”

“Anything I can do to help Japan, we will be there,” Trump said. “You’re going to do a fantastic job, and we’re going to have a fantastic relationship.”