Japan’s Prime Minister Shigeru Ishiba announced his resignation on 7 September 2025 after the ruling Liberal Democratic Party (LDP) suffered two major election setbacks that cost it majorities in both chambers of the Diet; he will remain in office until a successor is chosen.
Key Takeaways
- Shigeru Ishiba, 68, said he will step down following consecutive election losses by the LDP.
- The LDP lost its lower house majority for the first time in 15 years and also lost an upper house majority in July.
- Ishiba, in office since October 2024, cited the completion of US tariff negotiations as a reason for timing his resignation.
- Economic pressures — rising inflation and a doubling of rice prices over the past year — eroded public support.
- Controversies over cabinet appointments and gift-giving to party members further weakened his standing.
- The party had been preparing for a possible internal leadership vote that could have forced him out.
Verified Facts
Ishiba became prime minister in October 2024, pledging to tackle the cost-of-living crisis. His administration faced persistent economic headwinds, including high inflation and supply pressures. Public dissatisfaction increased as food costs rose sharply; government data and market reports show rice prices roughly doubled in the 12 months before his resignation.
The LDP lost its lower house majority for the first time in 15 years during a recent election, and it had already lost a majority in the upper house in July 2025. Those defeats reduced the party’s control over legislation and intensified calls within the party for leadership change.
In his resignation announcement Ishiba said negotiations with the United States over tariff measures had concluded. A deal formalized last week eased tariffs President Donald Trump had imposed on Japanese cars and other exports, a development Ishiba said should be handled before handing over leadership.
Until the announcement, Ishiba resisted resignation calls, arguing it was his duty to complete the trade negotiations. He said he will continue performing prime ministerial duties while the LDP selects a successor.
Context & Impact
The LDP has governed Japan for nearly seven decades; losing both chambers’ majorities marks a rare political shift and introduces a period of greater uncertainty in Tokyo. The change complicates policy-making on economic recovery, social spending and defense.
Japan’s role as the world’s fourth-largest economy and a key US ally makes the leadership transition geopolitically significant. Rising regional tensions, especially with China, and the need to coordinate with Washington on trade and security mean the new leadership will face immediate foreign-policy challenges.
Domestically, businesses — notably the auto sector — welcomed the tariff deal because it reduces trade uncertainty. However, investors and markets will watch closely for signs of fiscal or monetary policy shifts while political realignment unfolds.
Official Statements
“Now that a conclusion has been reached in the negotiations concerning the US tariff measures, I believe this is precisely the appropriate time,” Ishiba said.
Shigeru Ishiba
Unconfirmed
- Specific timetable for the LDP’s internal leadership vote and the names of frontrunners for the party leadership remain unconfirmed.
- The direct causal weight of the tariff agreement on Ishiba’s decision is subject to interpretation and not independently verified.
- Details on how the cabinet will be managed day-to-day until a new prime minister is chosen have not been finalized publicly.
Bottom Line
Ishiba’s resignation follows electoral setbacks and mounting public frustration over economic issues and political controversies. The LDP now faces an intra-party contest at a time when domestic recovery and international alignment, especially with the United States, require steady leadership.
Observers should expect an accelerated internal leadership process within the LDP and close attention from markets and allies as Tokyo moves to install a successor who can restore governing stability.