US secures $490 billion from Japan, inches toward goal of $550 billion

Donald Trump and Sanae Takaichi showed strong chemistry from the moment they met in Tokyo on Tuesday, as the two leaders moved quickly from introductions to signing a rare-earth and trade deal worth hundreds of billions of dollars.

The meeting took place at Akasaka Palace, where they confirmed energy, technology, and critical mineral cooperation, according to reports in Tokyo. The day also included a joint appearance before U.S. troops on an aircraft carrier and business talks with corporate leaders.

Sanae Takaichi, who became the first woman prime minister of Japan only days earlier, positioned herself as both a host and a strategic counterpart.

She welcomed Trump with a Ford F-150 parked outside their meeting and opened their conversation by talking baseball and her interest in World Series Game 3.

Trump commented on her handshake, calling it “a very strong handshake.” Takaichi responded by connecting the moment to her political mentor Shinzo Abe, gifting Trump a golf putter used by Abe, and saying, “Prime Minister Abe often told me about your dynamic diplomacy.”

US secures $490 billion from Japan, inches toward goal of $550 billion

The administration said Trump was close to securing $550 billion in Japanese investment into the United States as part of a wider trade framework.

That evening, Commerce Secretary Howard Lutnick announced at a business dinner that $490 billion had already been committed.

Among the major allocations were $100 billion for a Westinghouse nuclear project and another $100 billion for a GE Vernova nuclear project. Trump told the business executives at the dinner, “You’re great business people,” adding, “Our country will not let you down.”

Takaichi said Japan would send 250 cherry trees and fireworks to Washington in 2026 to mark the 250th anniversary of the United States.

Trump acknowledged the symbolic gesture and noted the significance of Takaichi being the country’s first woman prime minister. “Anything I can do to help Japan, we will be there,” Trump said. “We are an ally at the strongest level.”

The two leaders signed the documents in the palace’s neo-Baroque hall, beneath three chandeliers decorated with gold. While they did not directly mention China, the deal centered on critical mineral supply chains.

China currently processes more than 90% of the world’s rare earth elements. The United States holds around 12% of rare-earth extraction, and Myanmar about 8%, while Malaysia and Vietnam handle another small share of processing, where China remains dominant.

The White House said the United States and Japan would use economic policy tools and coordinated investment to speed development of diversified, liquid, and fair markets for these minerals.

The goal is to provide financial support to selected projects within six months. Both nations will consider a mutually complementary stockpile and expand cooperation with other partners to secure supply chains.

In a factsheet, Japan detailed interest in working with U.S. firms on AP1000 reactors and small modular reactors (SMRs). Companies expected to take part include Mitsubishi Heavy Industries and Toshiba Group.

Takaichi has placed nuclear power as a priority for her government, aiming for greater energy security and affordable power, especially after Japan shut down all nuclear plants following the 2011 Fukushima disaster caused by an earthquake and tsunami.

The global export market for nuclear technology is currently led by China, France, South Korea, and Russia.

A separate White House statement also mentioned cooperation on fusion energy, which Takaichi supports as a long-term strategic technology.

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