Prime Minister Shigeru Ishiba announced on Sunday that he would resign after less than a year in office, following the loss of his majority in both houses of parliament.
The decision injects fresh uncertainty into the world’s fourth-largest economy, already battling rising food prices and the impact of US tariffs on its crucial automotive sector.
At a press conference in Tokyo, the 68-year-old leader said the ruling Liberal Democratic Party (LDP) should prepare for a leadership contest, adding that he would remain in office until a successor is chosen.
“Now that negotiations on US tariff measures have reached a conclusion, I believe this is the appropriate moment,” Ishiba declared. “I have decided to step aside and make way for the next generation.”
His announcement came just days after US President Donald Trump signed an order reducing tariffs on Japanese cars from 27.5 to 15 per cent. Although a relief compared with previous levels, the levy still threatens to hurt Japan’s auto industry.
Ishiba, long considered a steady hand, took over the LDP in September 2024, becoming the party’s tenth prime minister since 2000. However, the LDP’s poor results in October 2024’s lower house elections and July’s upper chamber vote triggered mounting calls for him to quit.
Party officials, including deputy leader Hiroshi Moriyama, resigned last week, further increasing pressure. Media reports said Ishiba wanted to avoid a damaging party split and chose to resign voluntarily after senior figures urged him to step down.
Ishiba confirmed that he would not contest the upcoming leadership race. His chief rival, hardline nationalist Sanae Takaichi, runner-up in the last election, has already signalled her intention to run. A Nikkei poll in August ranked her as the most suitable successor, ahead of farm minister Shinjiro Koizumi.
Despite an online campaign urging Ishiba to stay, discontent with the LDP has grown amid corruption scandals, rising living costs, and falling standards of living. Some voters have shifted support to fringe parties such as the populist Sanseito.
Elected LDP leader last year on his fifth attempt, Ishiba had promised to deliver a “new Japan”. His appointment was initially welcomed by both China and South Korea, which hoped for better relations.