Trump in Japan: New deal on rare earths and other critical minerals signed | DW News

Key Concepts

• US-Japan Relations: Strengthening ties, personal relationship between leaders, ideological alignment.
• New Japanese Prime Minister: Sen Takichi, recently elected, mentee of former PM Abe Shinzō, seeking continuity with Trump.
• US Foreign Policy under Trump: Unpredictable ally, focus on trade and defense spending.
• Trade Agreement: Resolved over the summer, but questions remain about $550 billion in Japanese foreign direct investment.
• Rare Earths and Critical Minerals: Potential deal for supply chain cooperation, crucial for high-tech manufacturing.
• Defense Spending: Trump administration's push for allies to increase contributions, host nation support agreement renewal in Japan.
• US-China Relations: Hawkish stance, upcoming meeting between Trump and Xi Jinping, potential resumption of rare earth exports, avoidance of 100% tariffs on Chinese goods.
• APEC Meetings: Upcoming summit in Korea.

US President Trump's Visit to Japan and Meeting with Prime Minister Sen Takichi

US President Donald Trump is on the second leg of his Asia tour, with his visit to Japan including a meeting with the newly elected Japanese Prime Minister Sen Takichi in Tokyo. The primary objective of this meeting is to strengthen bilateral ties between the two nations. Prime Minister Takichi, who was elected by the parliament within the week, is keen to establish a personal rapport with President Trump, mirroring the relationship her mentor, former Prime Minister Abe Shinzō, had with Trump during his first term.

Key Issues in US-Japan Relations

The relationship between the US and its allies, including Japan, has been characterized by unpredictability under President Trump, particularly concerning trade and defense spending.

• Trade: While a trade agreement between the US and Japan was resolved over the summer under the previous prime minister's guidance, lingering questions persist regarding $550 billion in Japanese foreign direct investment that was pledged alongside tariff reductions agreed upon by President Trump. Elements of this deal appear to be extending into the current meeting, with reports of the Japanese government agreeing to purchase Ford trucks for its supply chain and a new deal on cooperation in the supply chain for rare earth and other critical minerals. An ongoing economic dialogue is expected to continue in the coming months and year.
• Defense Spending: The Trump administration has consistently urged its allies to increase their defense expenditures. Japan has a host nation support agreement with the United States, which covers Japanese government spending on US forces stationed in Japan. This agreement is up for renewal and negotiation next year. While a specific numerical target for defense spending, such as the 5% of GDP seen in Europe, is unlikely for Japan, pressures from the Trump administration in this regard are anticipated.

US-China Relations and the Upcoming Xi Jinping Meeting

Both President Trump and Prime Minister Takichi share a hawkish stance on China. President Trump is en route to Korea for the APEC meetings, where he is scheduled to meet with President Xi Jinping.

• Framework Agreement: According to the US Secretary of the Treasury, a basic framework of understanding has been reached with the Chinese. However, the specifics will only become clear after the meeting between Trump and Xi.
• Rare Earth Exports: Expectations are that rare earth exports from China to the United States will resume, as they have been halted.
• Tariffs: It is also anticipated that President Trump will not proceed with his proposal to impose 100% tariffs on Chinese goods.
• Ongoing Challenges: Despite these potential positive developments, the conversation with China is expected to be difficult, and it is unlikely that all US-China economic issues will be resolved during this meeting. This aspect is considered a significant part of President Trump's Asia trip.

Conclusion

The meeting between President Trump and Prime Minister Takichi highlights the ongoing efforts to strengthen US-Japan relations, particularly in the economic sphere with potential deals on critical minerals and foreign direct investment. However, challenges related to defense spending and the broader US-China economic landscape are expected to persist and require further negotiation in the future. The upcoming meeting with President Xi Jinping is a critical juncture for US-China economic relations.