Trump and Takaichi strengthen US-Japan alliance: military, markets, peace!

Trump and Takaichi strengthen US-Japan alliance: military, markets, peace!

The day in Tokyo was marked by important talks between US President Donald Trump and Japanese Prime Minister Sanae Takaichi. The two leaders highlighted the excellent relationship between the US and Japan, calling it the “strongest alliance in the world.” Takaichi stressed that under her leadership, Japan is making its contribution to peace and stability in the region and beyond. A central topic of the talks was military cooperation between the two nations.

Trump emphasized that Japan has significantly expanded its military capabilities and pointed to orders for new military equipment from the United States. This is in line with Takaichi's announcement to increase the defense budget to 2 percent of gross domestic product by March, two years earlier than originally planned. “The security alliance with the United States is the cornerstone of our foreign and security policy,” Takaichi said.

Strengthening cooperation on rare earths

Another central topic of the talks was a newly signed agreement to promote cooperation in the field of rare earths. Both countries want to ensure the resilience and security of supply chains for these critical minerals. Given China's quasi-monopoly in the rare earths market, this was a necessary step. Trump and Takaichi planned to use economic policy tools and coordinated investments to further develop markets for these valuable resources.

China has in the past imposed export controls on rare earths - an issue that plays a significant role in the US-China trade conflict. Trump's planned meeting with Chinese President Xi Jinping on Thursday on the sidelines of the APEC summit in South Korea is intended to initiate a dialogue on trade barriers and possible solutions. The possibility of suspending higher US tariffs on Chinese goods is also being discussed.

Economic impact and outlook

The special mention of the economic ties between the USA and Japan is no coincidence. In the past, Japan had already invested $550 billion in the USA, which led to a reduction in the tariff rate to 15%. This brought key benefits to Japan's auto industry, which accounts for 8% of the country's jobs, although tariffs have caused tensions recently.

As for the importance of rare earths, they are indispensable for many modern technologies - from smartphones to wind turbines to electric cars and defense equipment. Global reserves are estimated by the US at at least 110 million tonnes, with China processing much of it. However, mining these materials poses environmental challenges, so the focus should be on more environmentally friendly handling.

In summary, the talks between Trump and Takaichi not only deepened military cooperation, but also gave decisive impetus to economic relations and the strategic security of valuable resources. The coming months should show how effectively the agreed measures can be implemented.