Trump, Japan PM sign critical minerals deal amid China market dominance

President Donald Trump and Japanese Prime Minister Sanae Takaichi signed a framework settlement on Tuesday to safe the availability of essential minerals and uncommon earths via mining and processing, the White Home mentioned.

The deal got here after Trump met Japan’s first feminine chief as a part of his broader journey to Asia. Each Washington and Tokyo wish to strengthen their provide chains for uncommon earth metals, that are utilized in all the things from renewable vitality to electronics and vehicles.

In line with the White Home, Japan and the US plan to coordinate investments and coverage efforts to develop extra diversified and clear markets for important minerals and uncommon earths.

Inside six months, Washington and Tokyo plan to establish and finance new mining and processing initiatives for key supplies akin to magnets and batteries. The settlement additionally creates a joint “Speedy Response Group” to detect and ship vulnerabilities and coordinate emergency deliveries of important supplies.

TRUMP THREATENS ‘HUGE’ CHINA TARIFFS, SEES ‘NO REASON’ TO MEET XI

U.S. President Donald Trump, left, and Sanae Takaichi, Japanese Prime Minister, throughout a signing ceremony for a doc on the implementation of the U.S.-Japan commerce deal on the Akasaka Palace state guesthouse in Tokyo, Japan, on Tuesday, Oct. 28, 2025. (Kiyoshi Ota/Pool by way of REUTERS/Reuters)

Beneath the settlement, Japan and the US will streamline and speed up licensing procedures for important minerals and uncommon earths.

The settlement additionally requires each international locations to deal with overseas commerce distortions and unfair market practices.

The White Home mentioned Washington and Tokyo would discover a joint stockpiling association and work with different companions to strengthen provide chain safety.

TRUMP CALLS XI’S RARE EARTH MOVE A ‘BAD MOMENT’ – WHY IT IS IMPORTANT FOR US NATIONAL SECURITY, TIES WITH CHINA

Each governments mentioned they are going to work with “like-minded companions,” language seen as a nod to Australia and the European Union, as they attempt to construct a market different to China’s near-monopoly on uncommon earth processing.

US President Donald Trump and Japanese Prime Minister Sanae Takaichi attend a bilateral assembly at Akasaka Palace in Tokyo, Japan, October 28, 2025. (REUTERS/Evelyn Hockstein / Reuters)

China presently dominates the worldwide uncommon earth market and processes greater than 90% of those supplies. Beijing has just lately stepped up export restrictions, together with new objects on the management record, and tightened oversight of overseas producers that depend on Chinese language supplies.

Throughout Tuesday’s assembly with Trump, Japan’s new prime minister known as for a “new golden age” within the US-Japan alliance and introduced that Japan will donate 250 cherry timber to Washington subsequent yr to mark America’s 250th anniversary.

U.S. President Donald Trump, left, and Sanae Takaichi, Japanese Prime Minister, throughout a signing ceremony for a doc on the implementation of the U.S.-Japan commerce deal on the Akasaka Palace state guesthouse in Tokyo, Japan, on Tuesday, Oct. 28, 2025. (Kiyoshi Ota/Pool by way of REUTERS/Reuters)

The US, in the meantime, has only one operational uncommon earth mine and is busy securing important minerals for electrical autos, protection methods and superior manufacturing.

CLICK HERE TO GET FOX BUSINESS ON THE GO

As a part of his Asia journey, Trump will meet with Chinese language President Xi Jinping on Thursday.