Trump Signs Rare-Earth Deal in Asia Amid Trade Tensions

Busan, South Korea (AP) — President Donald Trump finalized a rare-earth minerals deal with Japanese Prime Minister Sanae Takaichi during his visit to Asia, aimed at stabilizing trade relations amid ongoing tensions with China.

Trump arrived in Busan on October 29, 2025. He was greeted with a ceremonial welcome, including a 21-gun salute, and remarked on the strong ties between the U.S. and South Korea. His visit is part of a broader tour that includes key meetings in Malaysia and Japan.

At the Asia-Pacific Economic Cooperation (APEC) summit, Trump expressed optimism about reaching a trade agreement with Chinese President Xi Jinping, who he will meet shortly on the sidelines of the summit. “I think we’re going to have a deal,” Trump stated, emphasizing the importance of cooperation over conflict.

Trump lauded the partnership between the U.S. and South Korea, referring to their collective efforts in sectors such as shipbuilding and technology. He described South Korea as a “cherished American friend” and praised Takaichi, who recently became Japan’s first female prime minister.

During the bilateral meeting, Takaichi informed Trump of her nomination of him for the Nobel Peace Prize, highlighting Japan’s commitment to strengthening U.S.-Japan relations.

The deal on rare-earth minerals underscores U.S. efforts to decrease reliance on Chinese exports, as China has recently imposed stricter controls on such resources. Scott Bessent, U.S. Treasury Secretary, stated that a framework for tariff negotiations with China had been reached, which could lead to avoidance of further tariffs on American goods.

Trump and Takaichi also signed an implementation agreement for the critical minerals deal, emphasizing their shared goals for implementing a mutually beneficial framework.

While Trump has indicated a desire to discuss North Korea’s abduction of Japanese citizens with Kim Jong Un, he acknowledged that concrete plans have not yet been made for such discussions.

“I’d love to meet him,” Trump told reporters while indicating the importance of relationship-building in international diplomacy. He remains hopeful for a peaceful resolution concerning North Korea and its actions.

As tensions with China continue to shape U.S. policy, both Trump and Takaichi pledged to work together for regional stability and mutual economic interests.