Japan's Prime Minister Shigeru Ishiba announced his resignation on Sunday, stepping down after less than a year in office following two major election defeats that cost the long-ruling Liberal Democratic Party (LDP) its parliamentary majorities.
Ishiba made the announcement a day before an expected LDP internal vote that could have forced him from office. The resignation comes after the party lost its majority in the lower house for the first time in 15 years and then lost its majority in the upper house in July, marking a sharp reversal for a party that has governed Japan for almost seven decades.
"Now that a conclusion has been reached in the negotiations concerning the US tariff measures, I believe this is precisely the appropriate time," Ishiba said, referring to a deal signed last week to ease U.S. tariffs on Japanese cars and other exports. He had resisted earlier calls to step down, saying it was his responsibility to settle the tariff dispute before leaving office. "I have strongly believed that negotiations concerning the US tariff measures, which could be described as a national crisis, must be brought to a conclusion under our administration's responsibility," he added.
The 68-year-old said he would continue to carry out his responsibilities "to the people" until a new prime minister is selected.
Ishiba took office in October 2024 pledging to tackle rising prices and a cost-of-living crisis, but his administration struggled to restore public confidence amid economic headwinds. Inflation proved politically damaging, with the price of rice doubling over the past year, and broader concerns about household spending and wage growth persisted.
Public support for Ishiba's government also waned after a series of controversies. Critics pointed to his decision to appoint only two women to the cabinet and to reports that he had handed out expensive gifts to party members. Those issues, combined with the election setbacks, undercut his standing within the LDP and across the electorate.
Ishiba's resignation injects political uncertainty into Japan at a delicate moment. The country, the world's fourth-largest economy and a key ally of the United States, is contending with rising regional tensions, notably with China, and questions about defense and diplomatic strategy that will test any new leadership.
The LDP must now choose a successor to lead the party and the government. The selection process will determine whether the party can regroup and reassert parliamentary control or whether a period of fragmented politics will continue. The outcome will shape Tokyo's policy approach to economic recovery, trade relations — including the newly concluded tariff agreement with the United States — and regional security.
Domestic and international observers will closely watch the LDP's next steps and the formation of a new cabinet, as Japan navigates the immediate aftermath of the party's electoral reversals and ongoing strategic challenges in East Asia.