Japanese Prime Minister Shigeru Ishiba has announced his decision to resign, news outlet NHK has reported. The move comes as he faces mounting internal pressure within his Liberal Democratic Party (LDP) following bruising losses in the July Upper House elections.
Ishiba became the prime minister in last October, but shortly after that his party LDP and coalition partner Komeito lost majority in a Lower House election. The ruling coalition also fell short of a majority in an Upper House election in July.
In response to escalating dissent, and a looming vote within his party, which is effectively a no-confidence motion, Ishiba concluded that stepping down was necessary to preserve party unity.
Notably, the decision to resign comes just days after Japan signed a trade deal with the United State, and pledged to invest $550 billion in the USA. Ishiba had personally endorsed the U.S. deal involving major Japanese investment in sectors ranging from semiconductors and energy to pharmaceutical production and infrastructure. This strategic economic commitment was made during recent U.S.–Japan trade negotiations. In return, U.S. reduced tariff on Japanese automobiles.
Significantly, U.S. President Donald Trump has said that his government will decide the sectors where the investments will be made. This essentially means that Japan will handover the money the U.S. for investing in sectors and industries of their choice.
Ishiba’s resignation comes at a critical time, as Japan navigates domestic economic challenges and international trade negotiations. The Liberal Democratic Party is expected to select a new leader in the coming weeks.
