🇺🇸 Trump in Japan: Historic Rare Earths Deal, AI Diplomacy, and $490 Billion Investment Wave

Trump’s High-Profile Asia Visit Begins in Tokyo

U.S. President Donald Trump arrived in Tokyo on Tuesday, kicking off a multi-nation Asia tour aimed at reinforcing economic, technological, and defense ties. His first stop in Japan marked a diplomatic milestone as he met with Prime Minister Sanae Takaichi, Japan’s first female leader, to sign a landmark rare earths and critical minerals agreement.

“Japan is our most trusted ally in Asia,” Trump told business leaders in Tokyo, emphasizing that the new deal would help both nations reduce dependency on China’s dominance in rare earth supply chains.

US–Japan Sign Rare Earths Agreement

At the Akasaka Palace, Trump and Takaichi signed a framework agreement to secure reliable supplies of rare earths and critical minerals. The pact aims to strengthen global supply-chain security, ensure sustainable resource access for the electronics and defense sectors, and counter China’s near-monopoly on mineral processing.

According to the White House, the United States and Japan will use coordinated investment and economic policy tools to “accelerate the development of diversified and fair markets for critical minerals.” Both governments plan to provide financial support within six months and explore a joint stockpiling arrangement.

$490 Billion Investment Deals Unveiled

Trump, joined by U.S. Commerce Secretary Howard Lutnick, announced that U.S. and Japanese companies will sign up to $490 billion in new investment deals. These cover energy, nuclear technology, and semiconductor manufacturing.

Among the commitments:

  • Westinghouse – up to $100 billion in next-generation nuclear reactors
  • GE Vernova – $100 billion toward energy infrastructure
  • Bechtel – $25 billion for engineering projects
  • SoftBank – $25 billion in tech investments

Other partners include Toshiba, Mitsubishi Electric, TDK, Fujikura, Carrier, and Kinder Morgan.

Trump said Japan’s Toyota Motor plans to invest $10 billion in new U.S. factories — aligning with Japan’s efforts to balance its trade surplus and deepen bilateral industrial cooperation.

Trump Praises PM Takaichi and U.S.–Japan Friendship

Calling his meeting with Takaichi “beautiful,” Trump hailed her as “a delight and a tough negotiator.” He declared:

“The friendship between the United States and Japan is stronger than ever — prosperous, thriving, and about to enter a new golden age.”

Takaichi, a protégé of the late Shinzo Abe, presented Trump with symbolic gifts — Abe’s golf putter and a gold-leaf ball — underscoring the personal ties linking Tokyo and Washington.

Missiles, Military Ties, and the USS George Washington Visit

At the Yokosuka Naval Base, Trump addressed 6,000 U.S. sailors aboard the USS George Washington, announcing that missiles for Japan’s F-35 jets will be delivered this week — ahead of schedule.

“Japan has been waiting for these for a long time. We got them here right away,” he said.

He praised the Japanese Self-Defense Forces for their cooperation and reaffirmed America’s commitment to regional stability. Japan hosts the largest concentration of U.S. military forces abroad, a cornerstone of Pacific security.

Energy and Nuclear Cooperation

A joint factsheet highlighted collaboration on next-generation nuclear reactors and fusion energy — sectors central to Takaichi’s energy-security agenda. Japanese firms such as Mitsubishi Heavy Industries and Toshiba Group are expected to participate in building AP1000 reactors and small modular reactors (SMRs).

The partnership marks a revival of Japan’s civil-nuclear ambitions after the Fukushima disaster and expands opportunities for the U.S. to export its advanced clean-energy technologies.

Trump to Meet Nvidia CEO Jensen Huang

During his Tokyo address, Trump revealed he will meet Nvidia CEO Jensen Huang on Wednesday.

“He’s a brilliant guy — an amazing innovator. I’m seeing him tomorrow,” Trump said, adding that artificial-intelligence cooperation will be key to U.S.–Asia growth.

Nvidia confirmed Huang’s plans to attend the Asia-Pacific Economic Cooperation (APEC) CEO Summit in South Korea, where he will meet global leaders and tech executives. Following Trump’s remarks, Nvidia shares rose in pre-market trading.

Trump’s Sharp Words for the Fed

Trump reignited criticism of Federal Reserve Chair Jerome Powell, calling him “incompetent or a bad guy.”

“Despite that, mortgage rates are down,” Trump quipped. “He’ll be out of there soon, and we’ll get somebody new.”

The President confirmed that Treasury Secretary Scott Bessent will present three to four candidates for the next Fed chair after the Asia trip.

Upcoming Meetings: Xi Jinping and Lee Jae Myung

Looking ahead, Trump announced that he will meet China’s President Xi Jinping on Thursday, calling it “a big meeting” that will “work out very well.” He also plans to visit South Korea to meet President Lee Jae Myung and attend the APEC CEO Summit.

Both leaders are expected to discuss North Korea’s denuclearisation, Taiwan Strait security, and Ukraine, along with global economic cooperation.

China Reacts

Responding to the U.S.–Japan summit, China’s Foreign Ministry urged that closer U.S.–Japan relations should “contribute to peace and stability in the region.” Beijing called on Japan to respect its neighbours’ security concerns amid Washington’s expanding presence in the Indo-Pacific.

Cultural Diplomacy and Symbolism

The evening concluded with a formal dinner for business leaders, set against the soft notes of Hotel California. Guests included Apple CEO Tim Cook and Treasury Secretary Scott Bessent. The room, adorned with American and Japanese flags, symbolized the renewed spirit of cooperation.

As Trump exited the USS George Washington, YMCA played over the loudspeakers — and he danced briefly, drawing applause from U.S. sailors and Japanese dignitaries alike.

A “Golden Age” for the U.S.–Japan Alliance

Prime Minister Takaichi later posted on X:

“A new chapter in the golden age of the Japan–U.S. Alliance begins today.”

From rare earths and nuclear energy to AI innovation and missile defense, the Tokyo visit underscored a new strategic era for two of the world’s leading democracies.

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