Will decide on resignation over election loss after studying U.S. tariff deal: Japan’s Shigeru Ishiba

Japanese Prime Minister Shigeru Ishiba said he will make a decision on resigning over a historic defeat of his ruling party in a weekend election after closely studying the tariff deal just struck with the United States.

Mr. Ishiba has been under mounting pressure to step down as his ruling Liberal Democratic Party and its junior coalition partner Komeito lost their majority in the 248-member upper house, the smaller and less powerful of Japan’s two-chamber Parliament on Sunday (July 20, 2025), shaking his grip on power and Japan’s political stability.

The loss means Mr. Ishiba’s ruling coalition, which also lost a majority in the more powerful lower house in October, now lacks a majority in both houses of Parliament, making it even more difficult for his government to achieve any policy goals and worsening Japan’s political instability.

Mr. Ishiba had announced his intention on Monday (July 21, 20250 to stay on to tackle pressing challenges, including tariff talks with the U.S., without creating a political vacuum, sparking calls from inside and outside his own party for a quick resignation to respond to the election results.

With the tariff deal with the U.S. paving the way for his possible departure, Japanese media said he is expected to soon announce plans to step down in August.

Also read: Threatened by President Donald Trump’s tariffs, Japan walks delicate tightrope between U.S. and China

Mr. Ishiba welcomed the trade agreement on Wednesday (July 23, 2025), which places a 15% tax on Japanese cars and other goods imported into the U.S. from Japan, down from the initial 25%, saying it was a product of tough negotiations to protect the national interest and that it would help benefit both sides as they work together to create more jobs and investment.

But Mr. Ishiba declined to comment on his possible move and only told reporters that he has to closely examine the trade deal first.

In Sunday’s election (July 20, 2025), voters frustrated with price increases exceeding the pace of wage hikes, especially younger people who have long felt ignored by the ruling government’s focus on senior voters, rapidly turned to emerging conservative and rightwing populist parties, such as the Democratic Party for the People and Sanseito.

None of the Opposition parties have shown interest in forming a full-fledged alliance with the governing coalition but they have said they are open to cooperating on policy.