Japanese Prime Minister Shigeru Ishiba has firmly denied reports that he plans to resign following his Liberal Democratic Party’s historic defeat in the weekend election. Ishiba emphasized his commitment to ensuring the proper implementation of the new tariff deal agreed upon with the United States. The agreement, unveiled on Tuesday, lowers tariffs on imports of Japanese autos and spares Tokyo from punishing new levies on other goods.
In a statement to reporters at the party headquarters on Wednesday, Ishiba said, “I have never made such a statement… The facts reported in the media are completely unfounded.” This comes after Japanese newspaper The Yomiuri Shimbun reported that Ishiba had decided to announce his resignation by the end of July, paving the way for a party leadership vote to choose his successor.
The election results have shaken Ishiba’s grip on power and Japan’s political stability, with the centre-right LDP and its junior coalition partner, Komeito, losing their majority in the 248-member upper house. The ruling coalition now lacks a majority in both houses of parliament, making it increasingly difficult for Ishiba’s government to achieve policy goals.
Ishiba welcomed the trade agreement, which places a 15 percent tax on Japanese cars and other goods imported into the US from Japan, down from the initial 25 percent before the August 1 deadline. He described it as a product of tough negotiations to protect Japan’s national interest and said it would benefit both sides by creating more jobs and investment. However, some analysts have criticized the deal, with Seijiro Takeshita, dean at the University of Shizuoka’s Graduate School of Management, Informatics and Innovation, suggesting that people should look beyond the numbers in assessing the trade deal’s impact on Japan.
The election results reflect voter frustration with price increases exceeding wage hikes, particularly among younger people who feel ignored by the government’s focus on senior voters. Emerging conservative and right-wing populist parties, such as the Democratic Party for the People and the “Japanese First” Sanseito far-right group, gained significant traction in the election.
Naomi Omura, an 80-year-old from Hiroshima, expressed her hopes for improvement in Japan, saying, “I really hope things will get better in Japan, but the population is declining, and I think living in Japan will get tougher and tougher.” While criticizing Japan’s inability to act more strongly towards the US, Omura acknowledged the agreement’s positive aspect, stating, “I think it was good that they agreed on a lower tariff.”
The opposition parties have shown no interest in forming a full-fledged alliance with the governing coalition but are open to cooperating on policy. Ishiba’s potential departure less than a year after taking office could trigger a succession battle within the ruling LDP as it faces challenges from new political parties, particularly on the right, that are eroding its support base.