What is the ‘golden age’ pact Trump and Japan PM Takaichi have signed?

United States President Donald Trump and Japan’s newly appointed Prime Minister Sanae Takaichi have signed a series of agreements in Tokyo that they described as ushering in a “golden age” for the alliance between their two nations.

The meeting, held on Tuesday, was one of the centrepiece moments of Trump’s second term foreign policy agenda and Takaichi’s debut on the global stage since becoming Japan’s first female leader.

The ceremony took place at the Akasaka Palace, Tokyo’s official guest house for visiting dignitaries, where both leaders hailed the friendship between their countries and sought to link their predecessors’ legacies to the future of the alliance.

Takaichi, who assumed office just days earlier, positioned the talks as a defining moment for her administration. “I would like to realise a new golden age of the Japan-US alliance, where both Japan and the United States will become stronger and also more prosperous,” she said.

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Trump, in turn, praised her rise to the top office, telling her, “Everything I know from Shinzo and others, you will be one of the great prime ministers. I’d also like to congratulate you on being the first woman prime minister. It’s a big deal.”

The warmth was evident from the outset. As the two greeted each other before the talks, Trump remarked approvingly on Takaichi’s handshake — “That’s a very strong handshake” — and she replied with personal anecdotes about watching the third game of the US World Series before their meeting.

In a gesture of goodwill, she announced Japan’s plans to donate 250 cherry trees to Washington next year in celebration of the United States’ 250th anniversary, along with fireworks from Akita Prefecture for America’s Independence Day festivities.

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Trump responded with characteristic enthusiasm. “Anything I can do to help Japan, we will be there,” he said.

“We are an ally at the strongest level.”

How Takaichi used echoes of Abe to woo Trump

Takaichi made repeated references to her late political mentor, former Prime Minister Shinzo Abe, who had cultivated a close personal bond with Trump during his presidency.

“As a matter of fact, Prime Minister Abe often told me about your dynamic diplomacy,” she told the US leader.

To honour that legacy, she presented Trump with several gifts linked to Abe and Japan’s golfing culture: the late leader’s putter encased in glass, a golf bag autographed by professional golfer Hideki Matsuyama, and a gold-leaf golf ball.

The two also signed black “Japan is Back” baseball caps styled after Trump’s signature “Make America Great Again” hats.

The gestures were calculated to evoke the camaraderie that had characterised Abe’s partnership with Trump — a relationship that helped Japan secure favourable trade terms and close coordination on defence issues during Trump’s first term.

Analysts noted that by leaning on Abe’s memory, Takaichi sought to strengthen her political position at home while establishing a personal rapport with Trump, whose leadership style often hinges on individual relationships.

What US-Japan discussed at the meeting

At the core of the day’s announcements was a revised trade framework described by both governments as the beginning of a “golden age” in economic cooperation.

The agreement reaffirms an earlier understanding reached between the two countries earlier this year, providing for a US tariff of 15 per cent on most Japanese imports — a reduction from the 25 per cent Trump had previously threatened to impose.

In return, Japan has pledged a massive $550 billion investment program in the United States. This funding will flow into sectors such as manufacturing, shipbuilding, artificial intelligence, and clean energy.

The investment package also includes commitments for Japan to increase its purchases of American products, particularly in automobiles, aircraft, agriculture, and natural gas.

During a working lunch of American beef and rice accompanied by Japanese vegetables, Takaichi presented Trump with a detailed map outlining the extensive footprint of Japanese investments in the US since his 2009 visit.

At least ten major Japanese firms are reportedly considering more than $400 billion in additional US projects, according to Japan’s public broadcaster NHK.

The lunch itself carried symbolic undertones: Japan deliberately served American beef and rice to highlight trade openness while blending domestic produce from Takaichi’s hometown of Nara to highlight cultural reciprocity.

Trump has long complained that Japanese consumers seldom buy American-made cars due to their size and Japan’s narrow roads.

In a symbolic gesture to address this criticism, a gold-toned Ford F-150 pickup truck and several white American-made Toyota vehicles were parked prominently outside the Akasaka Palace when reporters arrived.

What we know about the “golden age” document

After their discussions, Trump and Takaichi signed two documents. The first, described by the White House as a “golden age” accord, was a concise statement — less than one page — reaffirming the terms of the trade and investment arrangements between the two countries.

It formalises the US tariff structure on Japanese imports and the $550 billion Japanese investment commitment.

While the document does not introduce entirely new measures, it cements the previously negotiated framework into binding policy and marks its public launch as a symbol of renewed partnership.

The agreement also references an intent to foster greater cooperation on high-value industries and infrastructure development across both nations.

The second and arguably more strategically important accord focuses on securing critical minerals and rare earth elements, materials essential to advanced technologies, electronics, and defence manufacturing.

The White House characterised this framework as part of a broader effort to “assist both countries in achieving resilience and security of critical minerals and rare earths supply chains.”

Why the US-Japan rare earths deal matters

The rare earths and minerals agreement comes amid global concern over China’s tightening controls on exports of these materials, which are vital for industries ranging from smartphones to fighter jets.

The US and Japan aim to reduce dependence on Chinese sources by collaborating on the exploration, extraction, and processing of rare earths and other key minerals.

Under the framework, the two countries plan to jointly identify projects of mutual strategic interest within six months, focusing on technologies such as magnets, batteries, and mineral recycling.

The accord also includes provisions for developing stockpiles and promoting transparency in mineral markets.

According to the White House statement, both governments intend to use “economic policy and coordinated investment to accelerate development of diversified, liquid, and fair markets” for critical materials.

The rare earths partnership aligns with Trump’s broader agenda of strengthening US manufacturing resilience and reducing reliance on Chinese supply chains.

It also complements Japan’s ongoing efforts to diversify its energy and resource imports, especially as global geopolitical tensions continue to reshape the trade landscape.

What else was discussed & promised

In addition to economic cooperation, the Tokyo meetings reaffirmed mutual commitments in the security domain. Trump commended Japan’s plans to boost defence spending to 2 per cent of its GDP — a target aligned with Nato standards — and to purchase additional US defence equipment.

Takaichi, for her part, praised Trump’s diplomatic initiatives, particularly his efforts to broker ceasefires in volatile regions.

“Trump’s role in securing ceasefires between Cambodia and Thailand, and Israel and Palestinian militants, were ‘unprecedented’ achievements,” she said.

Takaichi also informed the White House that she would nominate Trump for the Nobel Peace Prize — a move that Trump’s team quickly publicised.

White House press secretary Karoline Leavitt confirmed the news, describing it as recognition of Trump’s recent diplomatic initiatives.

Both leaders discussed the ongoing war in Ukraine, with an emphasis on coordinating efforts to end the conflict and maintain global stability.

Though few details were disclosed publicly, US officials confirmed that the conversation included the implications of Russian aggression and the need for allied solidarity in Europe and Asia.

The two also addressed the humanitarian issue of Japanese citizens abducted by North Korea during the 1960s and 1970s. Trump met with families of abductees after the summit, expressing support for Japan’s demand that Pyongyang provide a full accounting of the victims and repatriate any survivors.

“The United States is with them all the way,” Trump said following the meeting.

How Trump’s Asia tour has fared so far

Trump’s Tokyo visit is part of a five-day Asia tour, his most extensive overseas trip since returning to the presidency in January.

He began the journey in Malaysia, where he met regional leaders to discuss trade and defence cooperation, before flying to Japan late Monday for meetings with Emperor Naruhito at the Imperial Palace.

Following his engagements in Tokyo, Trump is scheduled to visit Yokosuka, home to the US Navy’s aircraft carrier USS George Washington, and to address American troops stationed there.

Later in the day, he will meet with Japanese business executives to discuss new investment opportunities arising from the bilateral deals.

On Wednesday, US Defence Secretary Pete Hegseth will meet Japan’s defence minister Shinjiro Koizumi to expand on the strategic component of the alliance.

Trump will then continue to South Korea for a summit with President Lee Jae Myung before concluding the tour with high-stakes talks with Chinese President Xi Jinping.

The timing of the Tokyo agreements is especially significant given that Trump’s meeting with Xi is expected to address the ongoing US-China trade tensions.

Analysts suggest that the rare earths partnership with Japan could strengthen Washington’s negotiating leverage, as it represents a concrete step toward diversifying supply chains that Beijing has long dominated.

Why Trump’s visit was crucial for Takaichi

For Takaichi, the summit represented more than a diplomatic debut — it was a calculated effort to bolster her domestic standing.

Although she has enjoyed a surge in public approval since assuming office, her coalition government remains two votes short of a majority in Japan’s lower house of parliament.

A successful partnership with Washington could help solidify her authority and unify her party ahead of potential elections.

By invoking Abe’s legacy and demonstrating continuity with his foreign policy approach, Takaichi appears to be signalling to both domestic and international audiences that Japan will maintain a steady course in its US relations despite leadership change.

Her emphasis on economic strength, defence capability, and strategic coordination with Washington reflects a vision consistent with Japan’s long-term goals of balancing security challenges in the Indo-Pacific region.

For Trump, the agreements add to a growing list of foreign policy achievements that he has highlighted as evidence of his administration’s effectiveness.

The $550 billion investment pledge and the mineral supply chain framework offer tangible deliverables as he continues to position himself as a builder of “America First” alliances that yield measurable economic benefits.

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With inputs from agencies