Trump, Japan's Takaichi ink critical minerals deal amid China concerns
What's the story
United States President Donald Trump and Japan's new Prime Minister Sanae Takaichi have signed a framework agreement to secure the supply of critical minerals and rare earths. The deal was signed during Trump's visit to Japan as part of his trip to Asia, the White House said in a statement. The two countries aim to strengthen their rare earth supply chains that are used in renewable energy, electronics, and automobiles.
Market diversification
Deal aims to create fair markets for critical minerals
The agreement intends to use economic policy tools and coordinated investments to create diversified, liquid, and fair markets for critical minerals and rare earths. It also seeks to streamline permitting timelines and processes for these resources. The deal comes amid China's dominance in the rare earths market, where it processes over 90% of the world's supply.
Export restrictions
China tightens rare earth export controls; US races against time
China has recently tightened its export controls on rare earths, adding new elements to its control list and increasing scrutiny of foreign producers dependent on Chinese materials. In contrast, the US has only one operational rare earth mine and is racing against time to secure minerals critical for electric vehicles, defense systems, and advanced manufacturing.
Diplomatic meeting
Trump and Takaichi reminisce about former PM Abe
During his visit, President Trump met Prime Minister Takaichi at the Akasaka Palace in Tokyo. They reminisced about former Prime Minister Shinzo Abe, who was a close ally of both leaders. To commemorate their bond, Takaichi plans to gift Trump one of Abe's golf clubs during their meeting, Reuters reported, quoting a source. While she has seen a surge in public support since becoming Prime Minister, her coalition government is two votes short of a majority in parliament's lower house.
Trip itinerary
Trump's Asia trip packed with activities and meetings
President Trump's Asia trip is packed with activities, including addressing US troops aboard an aircraft carrier and meeting business leaders in Tokyo. After Japan, he will head to South Korea, where talks with Chinese President Xi Jinping are scheduled. During these discussions, Trump hopes to finalize a trade war truce between the world's two largest economies.