The agreement, seen as an early test for PM Takaichi, aims to strengthen industrial security, promote trade in technology-driven sectors, and support job creation in critical industries.

As part of the deal, Japanese exports to the US will now face 15% tariffs, finalizing a previously agreed arrangement. The move is expected to align the two countries’ markets, reduce trade tensions, and encourage investment.

Economists say the deal could reshape the global rare earths market, boosting supply for industries such as electric vehicles, mobile devices, and telecommunications equipment.

PM Takaichi described the agreement as a milestone in elevating Japan’s global standing, while President Trump emphasized America’s commitment to working with allies to foster sustainable economic growth and address global challenges.

The deal signals a new era of US-Japan cooperation in rare earths, with potential far-reaching impacts on global trade and technology development.