US President Donald Trump and Japan's new Prime Minister Sanae Takaichi have signed several key agreements in Tokyo, cementing their partnership on critical issues such as rare earth minerals and defense spending.
The deal is seen as a major victory for the US, which had been seeking increased investment from Japan to shore up its military capabilities. The agreement includes provisions for increased purchases of American soybeans, natural gas, and pickup trucks, as well as $550 billion in investments across various sectors including shipbuilding.
However, the terms also appear to temper Trump's demands for Tokyo to significantly increase its defense spending to counter China's growing assertiveness in the region. Takaichi pledged last week to fast-track plans to boost defense spending to 2 percent of Japan's GDP, which is still a relatively low target compared to other major militaries.
During their meeting at Akasaka Palace, Trump praised Takaichi as "one of the great prime ministers" and lavished her with personal praise, including a gift from his late friend Shinzo Abe. The gift included an Abe-signed golf bag and a gold-leaf golf ball.
The agreement on rare earth minerals is seen as a significant development in efforts to reduce reliance on China, which dominates global production of the critical materials used in high-tech products such as smartphones and fighter jets.
Takaichi's government has also committed to nominating Trump for the Nobel Peace Prize, according to the White House. The US and Japan will collaborate on identifying projects to address gaps in supply chains for these critical minerals and their derivatives.
As part of the agreement, Trump and Takaichi will visit various military installations, including a US naval base in Yokosuka, and engage with business leaders in Tokyo before traveling to South Korea, where they plan to meet with Chinese President Xi Jinping. The talks are seen as an attempt to seal a trade war truce between the world's two largest economies.
The deal is seen as a major victory for the US, which had been seeking increased investment from Japan to shore up its military capabilities. The agreement includes provisions for increased purchases of American soybeans, natural gas, and pickup trucks, as well as $550 billion in investments across various sectors including shipbuilding.
However, the terms also appear to temper Trump's demands for Tokyo to significantly increase its defense spending to counter China's growing assertiveness in the region. Takaichi pledged last week to fast-track plans to boost defense spending to 2 percent of Japan's GDP, which is still a relatively low target compared to other major militaries.
During their meeting at Akasaka Palace, Trump praised Takaichi as "one of the great prime ministers" and lavished her with personal praise, including a gift from his late friend Shinzo Abe. The gift included an Abe-signed golf bag and a gold-leaf golf ball.
The agreement on rare earth minerals is seen as a significant development in efforts to reduce reliance on China, which dominates global production of the critical materials used in high-tech products such as smartphones and fighter jets.
Takaichi's government has also committed to nominating Trump for the Nobel Peace Prize, according to the White House. The US and Japan will collaborate on identifying projects to address gaps in supply chains for these critical minerals and their derivatives.
As part of the agreement, Trump and Takaichi will visit various military installations, including a US naval base in Yokosuka, and engage with business leaders in Tokyo before traveling to South Korea, where they plan to meet with Chinese President Xi Jinping. The talks are seen as an attempt to seal a trade war truce between the world's two largest economies.