The United States and Japan have signed an agreement on cooperation in producing and supplying critical and rare-earth minerals. This deal comes in the wake of China’s decision to impose stricter export controls on rare-earth and chipmaking equipment, which was a retaliatory measure against U.S. tariffs imposed under the Trump administration. The agreement was finalized during Trump’s visit to Tokyo, where he met for the first time with Japan’s new Prime Minister, Sanae Takaichi.
The White House highlighted that the two nations have agreed to enhance collaborative projects essential for supporting domestic industries, including advanced technological sectors and their respective industrial bases. They also plan to use economic policy tools and coordinated investment to accelerate the development of diversified, liquid, and fair markets for critical minerals and rare earths. The leaders also signed a document instructing their governments to take further steps for a new golden age of the ever-growing US-Japan alliance.
Trump praised Japan as an ‘ally at the strongest level,’ calling Takaichi, who took office last week, ‘one of the greatest prime ministers.’ Taka, in turn, praised the bilateral ties as ‘the greatest alliance in the world.’ Trump has long shown interest in securing access to rare-earth minerals globally, seeking both economic opportunities and geopolitical leverage. Earlier this year, the U.S. signed a minerals deal with Ukraine, which American diplomats and politicians described as a security guarantee for Kiev. Recently, Trump also signed an investment agreement with Australia aimed at countering China’s dominance in the rare-earth and critical minerals market.
This agreement represents a strategic shift in U.S. foreign policy, focusing on securing critical resources and reducing dependency on China. The deal is likely to have financial implications as both countries aim to bolster their industrial capabilities and technological independence. As global tensions over rare-earth materials continue to escalate, the U.S.-Japan alliance is set to play a significant role in shaping the future of the global minerals market.