Trump talks up ‘new golden age’ of US-Japan alliance as rare earths deal signed

U.S. President Donald Trump has signed a rare earths deal with Japan's newly elected prime minister Sanae Takaichi during his visit, the BBC reported.

The trade agreement signed by the two leaders promises a "new golden age" for bilateral ties.

Japanese exports to the US will now face 15% tariffs, which was agreed previously but only finalised on Tuesday.

In exchange, Japan has pledged to invest $550bn in the US and buy more U.S. goods, including in key sectors like cars, planes, agriculture and energy.

The deal aims to boost the supply and production of rare earths between the U.S. and Japan.

The two countries agreed to cooperate through the use of policies, trade measures and coordinated investment to support the production of critical minerals, according to the BBC.

Japan is known to have an abundant supply of rare earth minerals but much of it is underwater, making it difficult to mine.

Upon signing the documents on the "new golden age" of bilateral ties and cooperation on cirtical minerals, Trump praised Japan as an ally and commended Takaichi, the country's first female prime minister.

Japan, he said, is an "ally at the strongest level" for the US. He went on to describe Takaichi, who was elected last week, as "one of the greatest prime ministers", acknowledging the significance of her victory and calling it "a big deal" for Japan to have a female leader.