The vulnerabilities – and opportunities – for Japanpublished at 06:20 GMT
Shaimaa Khalil
Tokyo correspondent
Pleasantries have set a positive tone to the meetings so far – but cutting through those, it is worth remembering that Washington can re-impose tariffs or cause other headaches for Japan if it doesn’t deliver on its promises.
Tokyo is ultimately still vulnerable to the whims of the White House. Its auto industry – the backbone of its economy – depends heavily on the US market. Harsher tariffs or tougher rules could hit companies like Toyota and Nissan hard.
But it also has a bargaining chip in rare earth minerals. Japan and the US just signed an agreement to boost supply and production of the compounds, which are in everything from military equipment to car – though Japan will need help and know how when it comes to mining the minerals, much of which is underwater.
Washington is desperate to decrease its reliance on China when it comes to rare earths, which all but monopolies the sector and has restricted exports to the US. And so the cooperation from Japan – and similar agreements with counties like Malaysia and Australia – will give Trump a stronger hand going into his meeting with President Xi on Thursday.
A vow from Takaichi – a defence hawk herself – to bring defence spending to 2% of GDP, possibly within six months, will also help keep the White House onside amid their push for allies to pour more into their militaries.
