Japanese Premier Shigeru Ishiba vowed to remain in his post after his ruling coalition suffered a bruising defeat in upper house elections, prompting some in his own party to doubt his leadership as the opposition weighed a no-confidence motion.
The embattled prime minister told a news conference yesterday that he would remain in office to oversee tariff talks with the United States and other pressing matters, such as rising consumer prices that are straining the world’s fourth-largest economy.
“I will stay in office and do everything in my power to chart a path toward resolving these challenges,” Ishiba said, adding that he intended to speak directly with US President Donald Trump as soon as possible and deliver tangible results.
Speaking in an interview with CNBC, US Treasury Secretary Scott Bessent was asked about the Japanese election and the effect it could have on trade negotiations.
He said the Trump administration was less concerned with Japan’s domestic politics than with getting the best deal for Americans.
A spokesperson for the US State Department called the US-Japan alliance the ‘cornerstone of peace, security and prosperity in the Indo-Pacific and across the world’ and said it had ‘never been stronger’.
Analysts say Ishiba’s days may be numbered, however, having also lost control of the more powerful lower house in elections last year and shedding votes on Sunday to opposition parties pledging to cut taxes and tighten immigration policies.
“The political situation has become fluid and could lead to a leadership change or the reshuffling of the coalition in coming months,” said Oxford Economics’ lead Japan economist Norihiro Yamaguchi.
Investors fear Ishiba’s administration will now be more beholden to opposition parties advocating for tax cuts and welfare spending that the world’s most indebted country can ill afford.
The 68-year-old leader said he had no plans to expand his coalition.
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