Japanese Prime Minister Shigeru Ishiba announced his resignation as president of the ruling Liberal Democratic Party (LDP), following a historic electoral defeat in July that cost his coalition its majority in both houses of parliament.
Ishiba, who initially resisted pressure to step down, said he wanted to ensure the implementation of a tariff deal with the United States before resigning. “With Japan having signed the trade agreement and the [US] president having signed the executive order, we have passed a key hurdle,” Ishiba said on Sunday (Al Jeezara, 2025). At 68, he stated it was time to “pass the baton to the next generation.”
He will remain prime minister until the LDP elects a new leader, but his departure deepens political uncertainty in Japan. The election losses, fueled by public discontent over rising living costs, weakened his government’s ability to pursue policies and intensified calls for his resignation from party rivals.
The resignation of the Prime Minister was expected by the public, taking responsibility for the defeat in the upper house election. He and the LDP haven’t been seen as stewards regarding the US and China situation and how they handle it.
The two candidates for potential successor are conservative Sane Takaichi who narrowly lost in the last elections, and current minister of farming, Shinjiro Koizumi.
“While Koizumi is not expected to bring major changes, Takaichi’s stance on expansionary fiscal policy and her cautious approach to interest rate hikes could draw scrutiny from financial markets” (Al Jeezara, 2025).
Although the resignation was signed days after the US dropped from 27.5 to 15 percent duty. The agreement for pharmaceutical and semi-conductors was not signed, leaving the discussion in the open.
Al Jazeera (2025, September 7). Japan’s PM Shigeru Ishiba resigns weeks after election debacle. Al Jazeera. https://www.aljazeera.com/news/2025/9/7/japans-pm-shigeru-ishiba-will-resign-weeks-after-election-debacle-nhk