Japanese Prime Minister Shigeru Ishiba announced his resignation on Sunday. He instructed the Liberal Democratic Party (LDP) to hold an emergency leadership race. Ishiba, 68, will stay in office until a successor is chosen.
Political Setbacks
Since taking power less than a year ago, Ishiba has faced major challenges. His ruling coalition lost its majority in both houses of parliament. Voters expressed frustration over rising living costs.
Despite pressure, Ishiba had resisted stepping down after July’s upper house elections. He focused on a trade deal with the United States. The deal aims to reduce tariffs on Japanese cars. Ishiba said, “With Japan having signed the trade agreement and the president having signed the executive order, we have passed a key hurdle. I would like to pass the baton to the next generation.”
Trade Deal Highlights
The trade deal includes Japan pledging Ksh70.95 trillion in investments in return for lower U.S. tariffs. This deal is Ishiba’s last major act as prime minister.
Who Could Succeed Ishiba?
Potential successors include Koizumi and Takaichi. Koizumi is expected to continue existing policies. Takaichi may adopt expansionary fiscal policies and a cautious approach to interest rate hikes.
The LDP does not have a majority in either house. The next leader is not guaranteed to become prime minister. Analysts say a snap election may be called. However, a Kyodo poll shows 55% of respondents do not want an early vote.
Political Implications
The far-right, anti-immigration Sanseito party gained ground in July. Their rise could influence Japan’s policy debates in the coming months.
Ishiba’s resignation marks a turning point. Japan now faces uncertainty as the LDP seeks new leadership.
