Tokyo, Japan – September 7, 2025 – Japan’s Prime Minister Shigeru Ishiba announced his resignation today as president of the ruling Liberal Democratic Party (LDP). His decision comes weeks after his coalition suffered a “historic defeat” in the July House of Councillors election, which led to mounting calls for his departure from within the party.
Ishiba had initially resisted resigning, stating he wished to first ensure the implementation of a tariff deal with the United States. Upon formalizing the agreement, he declared, “With Japan having signed the trade agreement and the [US] president having signed the executive order, we have passed a key hurdle. I would like to pass the baton to the next generation.”
Causes of Resignation
The Prime Minister’s departure was prompted by a combination of electoral and political failures. His administration saw its coalition’s majority in both houses of parliament wiped out in two separate electoral defeats. According to the provided reporting, these losses were fueled by voters’ concerns over the rising cost of living and a general sense of political instability.
Internally, Ishiba faced significant criticism from mostly right-wing opponents within the LDP. These factions held him responsible for the July election results and were critical of his foreign policy towards both the United States and China. Stephen Nagy, a visiting fellow at the Japan Institute of International Affairs, was quoted as saying that Ishiba “wasn’t seen as a strong steward” by conservatives and was “unrepresentative of where the LDP and its conservative credentials were.”
Potential Successors, and Future Implications
With Ishiba stepping down, a leadership race is now underway within the LDP. The winner of this contest will assume the role of Prime Minister and face the immediate challenge of restoring public confidence and navigating a divided parliament. The resignation deepens the political uncertainty for the world’s fourth-largest economy.
Two prominent figures have been identified as potential successors to lead the party:
- Sanae Takaichi: A conservative politician who narrowly lost to Ishiba in last year’s LDP run-off election. An economist cited in the article, Kazutaka Maeda, suggested that her stance on expansionary fiscal policy and her cautious approach to interest rate hikes could draw scrutiny from financial markets.
- Shinjiro Koizumi: The current farming minister and a member of a politically influential family. Maeda noted that Koizumi is not expected to bring major changes, suggesting a more continuous policy approach if he is elected.
The LDP is expected to hold internal elections soon to choose its next leader, who will then be confirmed as the country’s Prime Minister.
