Japan PM Denies Resignation, Focuses on US Trade Deal
Japanese Prime Minister Shigeru Ishiba has denied media speculation that he is planning to resign. Speaking on July 23, Ishiba called the rumours “baseless” and confirmed that no resignation discussions took place within his party. His statement follows poor results in the recent upper house elections, which triggered internal debate and public speculation about his leadership.
Coalition Loses Upper House Majority
The ruling coalition led by Ishiba’s Liberal Democratic Party (LDP) and its partner Komeito lost its majority in the 248-seat upper house. The setback follows an earlier loss of control in the lower house in October 2024. This dual loss marks the first time since the 1950s that the LDP-led coalition lacks control in both houses of Japan’s parliament, raising questions about the government’s ability to pass legislation smoothly.
US-Japan Trade Agreement Takes Centre Stage
Despite political pressure, Ishiba stated that he intends to remain in office to oversee the implementation of a major trade agreement with the United States. The deal, expected to take effect on August 1, will reduce tariffs on Japanese automobile exports from 25% to 15% and expand access for American agricultural products in Japan. Ishiba described the agreement as crucial for economic stability and job protection.
Party Divisions and Public Sentiment
Some lawmakers within the LDP have begun pushing for leadership change. Meanwhile, public support for Ishiba’s cabinet has fallen to 22%, reflecting growing dissatisfaction. Newer political parties, including the Democratic Party for the People and Sanseito, are gaining popularity among younger voters and recently secured additional seats in the Senate. Financial markets have also shown signs of unease due to political uncertainty.
Possible Leadership Contest Ahead
While Ishiba maintains his position for now, pressure is likely to build. If the internal dissent gains momentum, a leadership election within the LDP may be held in August. The outcome could significantly shape Japan’s economic and diplomatic direction, particularly with the US trade agreement entering a critical phase.
