The United States and Japan have signed a $55 billion trade agreement to secure rare earth mineral supply chains and reduce dependency on China. The deal, signed by US President Donald Trump and Japanese Prime Minister Sanae Taka on October 27, 2025, includes coordinated licensing, financing, and exploration plans. Japan will provide $55 billion in funding for US projects, while a 15% maximum tariff is set on Japanese exports to the US, including automobiles and parts. The agreement also features security clauses for potential future tariffs on semiconductors and pharmaceuticals and extends to defense cooperation, with Japan committing to a 2% GDP defense spending target by March 2026. The plan, expected to begin operations in 2027, will be funded from Japan's foreign exchange reserves to minimize market volatility. Companies like Tesla, Apple, and Lockheed Martin are poised to benefit from the supply assurance and environmental controls. Implementation is slated for Q1 2026, pending approval from Congress and the National Diet.