PM Takaichi shuffles Japan’s Cabinet to revive sagging support, keeps key Ministers

Japan’s Prime Minister Sanae Takaichi reshuffled her Cabinet on Thursday (September 17, 2026)in a bid to turn around her waning popularity, but retained key Ministersas she pursues stronger ties with the U.S.

Japan faces U.S. President Donald Trump’s tough demands for bigger defence spending, more investment in America and measures to combat a weak yen.

The reshuffle is the first by the right-wing star of the governing Liberal Democratic Party (LDP) since she took office last October as Japan’s first female leader in modern history. It’s a widely used tactic by a Prime Ministerto manage power balance within the party, policy priorities and public opinion.

She had for months enjoyed high ratings, attracting young voters with her style and straight talk that were fresh in male-dominated Japanese politics. But she has seen her popularity fade after pushing policies including an enforcement of male-only succession rules for the imperial family at a time people were expecting tougher measures to fight inflation.

Key Ministers will stay

Ms. Takaichi retained Defence Minister Shinjiro Koizumi and Foreign Minister Toshimitsu Motegi to ensure continuity of Japan’s key policies and good ties with Washington. Both are Ms. Takaichi’smain party rivals and keeping them is seen as her strategy to contain their influence.

Ms. Takaichi also kept Finance Minister Satsuki Katayama, her longtime confidant who has been implementing her ambitious spending policy, and Economy and Fiscal Policy Minister Minoru Kiuchi. Trade Minister Ryosei Akazawa, who has dealt with Trump’s tariff and investment demands, also kept his job.

In a party leadership revamp Wednesday (September 16, 2026), Ms. Takaichiretained a kingmaker and former Prime Minister Taro Aso as LDP vice president, his brother-in-law Shunichi Suzuki as secretary-general and a few of her right-wing allies. Her rival Takayuki Kobayashi stayed on as head of the LDP policy research council.

Maintaining stable ties with Washington is also important for MS. Takaichi as Japan struggles to mend ties with China following her comment last year that Japan’s military would could intervene if China were to take action against Taiwan — an island democracy that Beijing considers its own territory. The tensions have spilled over into the neighbours’ economic ties.

Ms. Takaichi, who will attend the UN General Assembly in New York later this month, is seeking a meeting with U.S. President Donald Trump ahead of his planned September 24 talks with Chinese President Xi Jinping, but prospects are unclear, according to Japanese media reports.

Japan plans for a stronger military with drones and use of AI

Takaichi’s government is working to revise security and defence strategy documents by the end of the year to bolster Japan’s offensive capabilities to deter threats from China, North Korea and Russia. Japan says it wants to adapt to “new ways of warfare” that involves use of artificial intelligence and combat drones and their deployment.

Takaichi-led government has increased defence spending to 2% of gross domestic product and wants spend more for 2027. Japan is likely to face U.S.demand for further increase, possibly up to 3.5% of GDP.

The victory in the Okinawa gubernatorial election Sunday (September 13, 2026)by Genta Koja, a conservative new face backed by Ms. Takaichi’sLDP and several other conservative parties, is expected to help her push for a military buildup on Japan’s southern islands to deter China.

Who are the new ministers

Ms. Takaichi replaced 10 out of 18 Ministers. Hiroshi Nakatsuka, from the LDP’s junior coalition partner Japan Innovation Party, was appointed as Minister of Administrative Reform and Children Policies. Kazuo Yana replaced Norikazu Suzuki as Agriculture Minister, despite Mr. Yana’s alleged involvement in a political funds scandal. Internal Affairs Mnister Yoshimasa Hayashi, Ms. Takaichi’s party rival, was replaced by Mr. Hisayuki Fujii.

Takaichi introduces tax cut and ambitious spending

Ms. Takaichi, as part of her measures to combat rising prices, has pushed a two-year cut in the consumption tax to 1% from the current 8% and payouts to households. But the plan without funding details has divided her party and could be a problem when parliament reconvenes in October.

The tax measure, adopted on Monday (September 14, 2026) by the Cabinet, has added to concern about Japan’s already strained financial health. Ms. Takaichi’s spending policy has already prompted U.S. Treasury Secretary Scott Bessent to urge Japan to stop the reflationary policy of weak yen and low interest rates.