U.S., Japan Announce $490B Investment Launch

President Trump met in Tokyo with new Prime Minister Sanae Takaichi, praising her and exchanging gifts tied to the late Shinzo Abe. The two signed accords to deepen the alliance and a framework on critical minerals and rare earths aimed at reducing reliance on China, including a mutual stockpiling arrangement and cooperation with partners to secure supply chains. Tokyo and Washington released a list of proposed projects in energy, AI and critical minerals, and Commerce Secretary Howard Lutnick announced an initial $490 billion “launch phase” of commitments toward an overall $550 billion strategic investment pledge from their July trade deal. Takaichi pledged to accelerate Japan’s military buildup and fast-track higher defense spending, including pursuing a 2% of GDP target, and reportedly offered to nominate Trump for a Nobel Peace Prize. Trump framed the agreements as reinforcing the U.S.-Japan partnership as the “foundation of peace and security in the Pacific” and touted the investments and rare-earth pact as major bilateral wins ahead of further regional diplomacy.