The United States and Japan have signed a new deal aimed at securing supplies of critical minerals and rare earths, as President Donald Trump hailed a “golden age” in relations with Tokyo. The agreement, signed during Trump’s visit to Japan on Tuesday, reflects a growing effort by Washington to reduce its dependence on China for vital resources that power everything from electric cars to fighter jets.According to the White House, the framework is designed to ensure “resilience and security of critical minerals and rare earths supply chains.” The pact comes just days after Trump announced similar memoranda of understanding with Malaysia and Thailand, marking a coordinated push to diversify sources of rare earth materials across the Indo-Pacific.
Prime Minister Sanae Takaichi, Japan’s first female leader, hosted Trump at Tokyo’s Akasaka Palace. “This is the greatest alliance in the world,” she said, pledging to build a “new golden era” in US-Japan relations. Trump returned the praise, calling her leadership a “big deal” and promising that “anything I can do to help Japan, we will be there.”
The rare earth standoff
The Tokyo deal comes at a tense moment in the global race for rare earth dominance. China controls around 70 per cent of global mining and nearly 90 per cent of refining capacity for these elements, which are essential for advanced technologies including smartphones, electric vehicles and military aircraft.Beijing recently expanded export controls, requiring government approval for any products containing even trace amounts of rare earths. The move, described by US Treasury Secretary Scott Bessent as “China pointing a bazooka at the world’s supply chains,” reignited tensions after months of calm between the two powers.Trump’s counter-strategy has been to build alliances to weaken Beijing’s grip. In Kuala Lumpur earlier this week, he signed deals with Malaysia and Thailand to bolster production and exports of critical minerals, following an $8.5 billion US-Australia framework agreement. “In about a year from now, we’ll have so much critical mineral and rare earths, and you won’t know what to do with them,” Trump said confidently on Monday.Experts, however, warn that such optimism may be premature. “China is too far ahead of the world,” said John Mavrogenes, professor of economic geology at the Australian National University, who estimated that alternative supply chains could take a decade to fully develop.
Message to Xi?
Beyond its economic implications, Tuesday’s signing ceremony was rich in symbolism. Trump and Takaichi also inked a brief one-page declaration heralding the “golden age” of their nations’ alliance — a gesture intended to reaffirm America’s strategic commitment to Japan as both countries navigate the shifting power balance in Asia.The deal also arrives days before Trump’s expected meeting with Chinese President Xi Jinping in South Korea, where trade and rare earths are likely to dominate talks. Analysts say the new Japan agreement sends a clear signal to Beijing that Washington is working to fortify supply lines with trusted allies.“By building alternative networks, the US increases its leverage in negotiations with China,” Charles Chang of Fudan University told South China Morning Post. “Even if production takes time, it changes the dynamics.”Takaichi, a protégé of former prime minister Shinzo Abe, presented the US president with gestures of goodwill — 250 cherry trees for America’s 250th anniversary and fireworks from Akita Prefecture for the 4 July celebrations — reinforcing the sense of friendship amid hard-nosed diplomacy.
