Japan’s PM Ishiba expected to resign following election setback

Japanese Prime Minister Shigeru Ishiba is expected to announce his resignation by the end of August, following a damaging election loss that saw his government lose its majority in the upper house.

The news surfaced only days after Ishiba and US President Donald Trump unveiled a trade agreement aimed at reducing tariffs on Japanese car exports and shielding Tokyo from further American duties on other products, Caliber.Az reports per foreign media. 

Despite the election blow, Ishiba had initially signalled his intention to remain in post to oversee the implementation of the trade pact and address Japan’s deepening economic challenges.

"I can't say until I scrutinise the outcome of the agreement," Ishiba told reporters on July 23, when asked whether the deal with Washington would influence his decision to step down.

According to the Yomiuri Shimbun, Ishiba informed close aides on Tuesday evening that he planned to take responsibility for the ruling party’s poor performance after finalising the trade agreement.

Should Ishiba step down less than a year into his premiership, the ruling Liberal Democratic Party would be forced into a leadership contest at a time when it is already facing mounting pressure from emerging rivals—particularly right-wing parties gaining traction with voters.

One such group, the far-right Sanseito party, saw a surge in support during the vote on July 20, increasing its seats in the 248-member upper house from one to 14. The party has campaigned on anti-immigration rhetoric, tax cuts, and cost-of-living support.

Ishiba came to power after defeating hardline conservative Sanae Takaichi in last year’s LDP leadership runoff.

He is expected to hold talks with senior party figures later on Wednesday to assess the election results.

By Aghakazim Guliyev