Japan and U.S. Aim to Strengthen Rare Earth Supply Chains amidst Tariff Talks

In a strategic move, Japan is set to propose bolstered cooperation with the United States on rare earth supply chains during upcoming tariff negotiations. This initiative comes amidst concerns over China's recent export restrictions, as reported by the Nikkei business daily on Thursday. The discussions could mark a significant shift in economic dynamics between the two countries.

Meanwhile, Japan's Jiji Press highlights a promising development: the United States has indicated a willingness to reduce some of the reciprocal tariffs currently affecting Japanese exports. Despite the 24% tariffs imposed by President Donald Trump, which are presently on hold, a universal 10% tariff remains in effect. However, the U.S. seems amenable to lowering the additional suspended 14% after negotiations.

Leading the charge for Japan, chief tariff negotiator Ryosei Akazawa is en route to Washington for a fifth round of discussions. These talks will involve high-level officials including Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick. Japan is particularly eager to see changes in U.S. tariff policies, especially regarding the 25% tariffs on Japanese car imports, a critical sector for the nation's economy.

(With inputs from agencies.)