Japanese Prime Minister Shigeru Ishiba Resigns as LDP Leader After Historic Election Defeat
Japanese Prime Minister Shigeru Ishiba has announced his resignation as president of the Liberal Democratic Party (LDP), weeks after the ruling coalition suffered a crushing defeat in the July elections.
Speaking at a press conference on Sunday, Ishiba, 68, said he would step aside to allow a new generation of leaders to take charge. His decision came after mounting pressure from within the party, as critics blamed him for the coalition’s electoral collapse.
“With Japan having signed the trade agreement with the United States and the U.S. president having issued the executive order, we have cleared a key hurdle,” Ishiba stated. “I would now like to pass the baton to the next generation.”
Political Uncertainty Deepens
Ishiba will remain as prime minister until the LDP holds internal elections to select a new party leader. His resignation adds to the political turbulence in the world’s fourth-largest economy, where rising living costs and voter discontent have eroded support for the ruling coalition.
Since taking office in October last year, Ishiba has struggled to maintain public trust. The coalition’s loss of its majority in both houses of parliament left his government weakened and unable to push through key policy measures.
Pressure From Within the LDP
The prime minister had initially resisted calls to quit, insisting he should stay to oversee the implementation of a new tariff agreement with Washington. But according to reports, senior party figures—including Japan’s agricultural minister and a former prime minister—met Ishiba on Saturday to urge his resignation.
His departure paves the way for a leadership contest that is expected to feature Sanae Takaichi, a conservative lawmaker who narrowly lost to Ishiba in last year’s LDP run-off, and Shinjiro Koizumi, the current agriculture minister and son of former Prime Minister Junichiro Koizumi.
Analysts say Takaichi’s economic stance, particularly her support for expansionary fiscal policy and cautious approach to interest rates, could attract close scrutiny from global financial markets. Koizumi, by contrast, is viewed as a continuity candidate unlikely to push for major shifts.
Trade Deal With the U.S.
Ishiba’s resignation comes just days after U.S. President Donald Trump signed an executive order lowering tariffs on Japanese car imports from 27.5 percent to 15 percent, formalizing a trade agreement announced in July.
While the deal marked progress, Tokyo’s top negotiator cautioned over the weekend that the broader trade framework is still not finalized, noting that U.S. orders on pharmaceutical and semiconductor tariffs remain pending.
What Comes Next for Japan?
With Ishiba stepping down, Japan faces a period of uncertainty as the LDP prepares to choose his successor. Whoever takes the helm will inherit not only a fragile coalition and a skeptical electorate but also the pressing task of steering Japan’s economy amid global trade shifts and domestic challenges.