Trump, Japan PM Takaichi ink trade and rare earth pacts

US President Donald Trump and Japanese Prime Minister Sanae Takaichi on Tuesday signed two major agreements after their bilateral meeting, one centred on trade and the other on critical minerals.

The first deal, described as brief, called for a "new golden age" in the US-Japan alliance and referenced the trade pact Trump announced in July. Under that arrangement, a 15 per cent tariff will apply to Japanese exports in exchange for USD 550 billion in Japanese investment in the United States.

The second agreement established a framework to secure the supply of critical and rare-earth minerals through strengthened cooperation in mining and processing.

The initiative aims to boost supply chain resilience for materials vital to the production of electronics and advanced technologies.

The signing followed Trump's meeting with Prime Minister Takaichi at Akasaka Palace in Tokyo on Monday, marking the start of his official engagements in Japan -- the second stop on his three-country Asia tour.

Their discussions laid the groundwork for the two landmark deals, reaffirming the strategic and economic partnership between Washington and Tokyo.

During their meeting, the two leaders discussed ways to further strengthen bilateral ties. Takaichi pledged to build a "new golden era" of the Japan-US alliance together with Trump, calling the bilateral relationship "the greatest alliance in the world," according to Japanese state media.

She also praised Trump's role in promoting peace in West Asia and resolving the conflict between Thailand and Cambodia, calling them "unprecedented historic achievements," the report said.

Following their discussions, Trump joined Takaichi for the Welcome Ceremony at Akasaka Palace, where they reviewed the guard of honour and greeted attending officials.

The ceremony reflected the growing partnership between Washington and Tokyo amid evolving regional and global developments.

The Japanese delegation extended a warm welcome to Trump, reaffirming Japan's commitment to close cooperation with the United States on trade, security, and economic matters.

Takaichi also interacted with members of the US delegation, including Secretary of State Marco Rubio, Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, the United States Trade Representative, and White House Press Secretary Karoline Leavitt.

Trump's engagements in Tokyo came a day after his audience with Japan's Emperor Naruhito at the Imperial Palace, where he described the monarch as "a great man".

The meeting lasted for more than half an hour, and Trump recalled their earlier interaction during his 2019 state visit, when he was hosted at a banquet, according to CNN.

Japan is Trump's second stop on his five-day Asia tour. Earlier, he was in Malaysia, where he attended the 47th ASEAN Summit and participated in the signing of the Cambodia-Thailand peace deal.