U.S.-Japan Talks: Trade, Security, and Rare Earths in Focus

U.S. President Donald Trump and Japan's Prime Minister Sanae Takaichi have commenced discussions in Tokyo, focusing on trade, security, and the supply of rare earth minerals. Key topics include a framework for rare earths, shipbuilding collaboration, energy infrastructure, and efforts to balance the trade surplus, particularly in automotive and agricultural sectors.

U.S. President Donald Trump embarked on his first visit to Japan since 2019 to hold significant talks with Prime Minister Sanae Takaichi. The discussions in Tokyo address crucial topics such as trade, security, and the strategic supply of rare earth minerals, amidst growing tension over export controls by China.

The two nations have signed a framework aimed at ensuring a steady supply of rare earths and critical minerals, vital for technological and defense applications. This comes after China imposed stringent export restrictions in October. Both countries seek to broaden their economic tools and investments in developing a diversified, liquid market for these minerals.

Apart from mineral supply, the talks extend to shipbuilding and energy. A recent understanding will allow Japan to aid U.S. shipbuilding, under a $550 billion deal. On the energy front, Japan signals readiness to increase U.S. liquefied natural gas imports while discussing how to decrease reliance on Russian LNG supplies currently under long-term contracts.

(With inputs from agencies.)