Name: Japan’s Prime Minister Is Resigning. Here’s What’s Next.
Uploaded: 2025-09-08T12:26:00Z
Duration: 2 min 52 s
Description: Prime Minister Shigeru Ishiba will step down despite sealing a major U.S. trade deal. WSJ’s Jason Douglas explains the implications for Japan’s future.

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Prime Minister Shigeru Ishiba will step down despite sealing a major U.S. trade deal. WSJ’s Jason Douglas explains the implications for Japan’s future. Photo: Kyodo News/Zuma Press

https://m.wsj.net/video/20250908/8714d00c-276d-4c6b-a27b-8ba91a9af503/1/hls/manifest-hd-wifi.m3u8

Prime Minister Shigeru Ishiba will step down despite sealing a major U.S. trade deal. WSJ’s Jason Douglas explains the implications for Japan’s future.

Japan’s Prime Minister Is Resigning. Here’s What’s Next.

Japanese Prime Minister Shigeru Ishiba resigned on Sunday night as leader of the ruling party, the Liberal Democratic Party. His decision to go wasn't a huge surprise. He was under quite a bit of pressure from members of his own party to resign following a run of pretty bad election results. So much so, in fact, had he not resigned, the LDP was expected to try to force a leadership election in a vote on Monday. He will remain as prime minister for a little bit while the LDP chooses a new leader, a process that could take about a month, Ishiba's big achievement while in office, and he wasn't in office for very long, it was less than a year, was a trade deal with President Trump. So the negotiations, which took place over the last few months, were sometimes a little bit testy, a little bit strained, but in July, both sides said that they had reached agreement. And then only last week, Donald Trump finally signed an executive order that brought that agreement into force. Now, Japan had been waiting for that for quite some time, and that order brings down the tariffs on Japanese auto exports, which has been a pretty painful experience for Japan's big automakers, but it wasn't enough to save his political career. The front runners in the leadership election are likely to be Sanae Takaichi, who would be Japan's first female prime minister, were she to win. And Shinjiro Koizumi, who is the son of a former Japanese prime minister, and he's from the more moderate wing of the LDP. Whoever wins the leadership election will have quite a lot to deal with, and not least the relationship with the United States and President Trump. Of those two front runners, Takaichi is from the right of the party. She's probably ideologically more close to Trump. She's an acolyte, a friend, an ally of the late Shinzo Abe, which might appeal to him, to the president. But Koizumi is young and energetic, and from a new generation of leaders. And we know that that sort of energy tends to appeal to President Trump as well. There are also security challenges in the region. Japan has been building up its defense capabilities to hopefully counter the potential of threats from North Korea and from China. And above all, Japan's economy isn't doing great. It has been in stagnation for most of the past 30 years. It is starting perhaps slowly to come out of that, but that's bringing with it, you know, a bout of inflation. And that is proving very painful for Japanese voters who have been pretty upset at the decline in living standards and have been flocking to alternative parties to the LDP, which had ruled Japan for most of its post-war history. But even a new leader won't bring an end to what is really quite an unsettled period in Japanese politics. The LDP lacks a majority. Whoever is the new LDP leader will have to convince the parliament that they ought to be prime minister. There is a real possibility that we could have another election at some point. So it is quite a sort of choppy period ahead.

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