Election Shake-Up as Prime Minister Ishiba Scrambles To Rebuild After Double LDP Loss

Pending tariffs from America and a political deadlock are threatening Japan’s economic stability.

AP/Philip Fong
Japan's prime minister, Shigeru Ishiba, attends a press conference at the headquarters of the Liberal Democratic Party at Tokyo, July 21, 2025. AP/Philip Fong

The political landscape across Japan has been thrown into turmoil after the prime minister’s ruling party was handed a historic defeat during this past weekend’s elections.

Prime Minister Ishiba’s coalition fell just three seats short of a majority in the country’s upper house of councillors, leaving the leader’s political future hanging in the balance as he seeks to buy time and rebuild his coalition.

Mr. Ishiba is the first leader of Japan’s Liberal Democratic Party at the helm of an administration without a coalition majority in both chambers since the party began in 1955, according to Bloomberg News.

The election was a stinging rebuke to the prime minister and the LDP just nine months into his tenure. The LDP has now suffered crushing defeats in two consecutive national elections under his leadership, following the devastating loss of the lower house majority in October. 

Since several major opposition parties campaigned on reducing the sales tax, the prime minister is left to likely to compromise on his agenda to advance any significant policy initiatives.

 “The Ishiba administration has received a harsh verdict,” a political science professor at the University of Tokyo, Yu Uchiyama, said to the Japan Times. “It seems the public believed that the government and ruling parties failed to respond effectively to various issues, including rising prices.”

“The opposition’s call for a consumption tax cut appears to have appealed to voters more than the ruling party’s proposed cash handouts.”

Although he faces limited leverage to resist opposition pressure or negotiate an eleventh-hour trade agreement with the United States, Mr. Ishiba has pledged to remain in office despite holding minority status in both legislative chambers. 

In an interview with NHK on Sunday evening he said his party still “has responsibilities to the nation what we must fulfill.”

In a press conference that took place after a meeting with senior LDP leaders on Monday, Mr. Ishiba elaborated on those obligations.

“The most important thing for Japan is political stability, as the country faces various challenges,” he said, referring to American tariffs, inflation, and a complex security environment.

“Japan is now facing a severe situation that could be called a national crisis.”

He also addressed the impending 25 percent tariff on Japanese goods that the Trump administration will place on the country on August 1.

“I would personally like to speak directly with President Trump as soon as possible to achieve tangible results,” he said.


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