Japanese Prime Minister Shigeru Ishiba has stepped down in an effort to prevent further divisions within his ruling Liberal Democratic Party (LDP), plunging the world’s fourth-largest economy into renewed political uncertainty. Ishiba formally announced his resignation on Sunday, 7 September, following days of speculation and mounting pressure from within his party.
His departure comes against a backdrop of rising living costs, contentious rice policy reforms, growing regional tensions, and uncertainty over the impact of US tariffs on Japan’s economy. Ishiba, who assumed office last year, had seen his LDP-led coalition lose its majority in both houses of parliament, first in the lower house, and then in July’s upper house election, where the party suffered a historic defeat.
The loss intensified calls for his resignation, particularly from right-wing factions within the LDP, which has governed Japan for most of the post-war era. Following the upper house setback, the party conducted an internal review and concluded that sweeping reforms were necessary, further increasing the pressure on Ishiba to step aside.
Before resigning, Ishiba had hoped to oversee the implementation of a newly finalised trade agreement with the United States. Under the deal, Japan pledged US$550 billion in investments in exchange for reduced tariffs on its automobile exports to the US market. However, he was unable to remain in office long enough to see the agreement through.
The LDP will now move to select a new leader, who will inherit the challenge of steering Japan through economic headwinds, diplomatic complexities, and a fractured political landscape.
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