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Japan pledges $550 billion to US to strengthen economic ties

Published on: October 28, 2025 5:44 PM

TOKYO – Japan’s Prime Minister Sanae Takaichi announced a $550-billion investment package for the United States. The move aims to deepen economic ties and secure critical minerals and rare earths. The agreement includes mining, processing, and joint investments to ensure stable global supply chains. Officials said the deal will also boost shipbuilding and increase purchases of soybeans, gas, and pickup trucks.

During the signing, Takaichi and US President Donald Trump emphasized strong bilateral cooperation. Trump called Takaichi a “strong leader” and praised her rise as Japan’s first female prime minister. Takaichi highlighted the shared vision for a “new golden age” in Japan-US relations. The framework agreement ensures transparent and fair markets for strategic materials used in defense and high-tech industries.

Read more: Trump gets royal welcome in Japan as China trade truce hopes rise

The investment package marks a major economic step amid global competition for critical resources. Both nations plan to coordinate policies and investments to strengthen supply chains. Analysts say the pact could support products ranging from fighter jets to smartphones. Takaichi and Trump underscored the strategic importance of this partnership for the Indo-Pacific region.

The leaders later visited the US naval base in Yokosuka, home to the aircraft carrier USS George Washington. The visit reinforced security cooperation and mutual commitments in the region. Trump stressed that economic and defense partnerships will help maintain regional stability. Takaichi reiterated Japan’s dedication to working closely with the United States on strategic projects.

Read more: Trump to Push Massive Investments in Japan and South Korea 

Earlier, Trump met families of Japanese citizens abducted by North Korea in the 1970s and 1980s. He promised to raise the issue with North Korean leader Kim Jong Un. Japan claims 17 citizens were abducted, five of whom returned in 2002. Trump will continue his Asia trip by visiting South Korea to discuss a possible trade truce with China.

 

Filed Under: World Tagged With: $550-billion investment, critical minerals, Donald Trump, Japan, Latest, Rare Earths, Sanae Takaichi, United States

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