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Indonesia News Portal for Traders | Financial & Business Updates

28 October 2025 07:48  |

Trump Meets Japan's New PM: A Big Trade Deal, a Signal Against China?

US President Donald Trump will meet with Japan's new Prime Minister, Sanae Takaichi, in Tokyo. His focus will be on two things: trade and security. Takaichi—who has only been prime minister for a week and is also the first woman to lead Japan—wants to show Trump that Japan remains a key ally in Asia. She is expected to offer the previously discussed massive investment package of around $550 billion, including shipbuilding cooperation, as well as a commitment to purchase more US products such as pickup trucks, soybeans, and natural gas. This is a kind of "goodwill gesture": Japan will buy more American goods to ease Trump's tariff pressure. Takaichi also wants to establish a close personal relationship with Trump, similar to the style of the late Shinzo Abe, who was once very close to Trump.

But the matter goes beyond trade. The two will also discuss regional security, particularly the threat from China. Takaichi has promised to accelerate Japan's military buildup, but she is likely to stick to the defense budget cap of around 2% of GDP, rather than the wild increases Trump has often demanded. In addition, Japan and the US are also preparing to cooperate on critical raw materials such as rare earth minerals to ensure the high-tech supply chain is less dependent on China. After formal talks at the State Guest House in Tokyo, their agenda includes a visit to the US military base in Yokosuka—a symbol that the US-Japan security alliance is more than just empty talk. Politically, this is a crucial moment for Takaichi: public support is on the rise, but his position in parliament remains fragile. So he needs Trump to appear strong abroad, and Trump needs Japan to demonstrate that the US still holds sway in Asia ahead of his upcoming talks with Chinese President Xi Jinping. (az)

Source: Newsmaker.id

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