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Delhi News Daily > Blog > World News > Crisis in Japan? Shigeru Ishiba steps down as PM – what led to it and what’s next – The Times of India – Delhi News Daily
World News

Crisis in Japan? Shigeru Ishiba steps down as PM – what led to it and what’s next – The Times of India – Delhi News Daily

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Last updated: September 7, 2025 1:30 pm
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Why Ishiba was forced outWhat comes next for Japan
Crisis in Japan? Shigeru Ishiba steps down as PM – what led to it and what’s next

Japanese Prime Minister Shigeru Ishiba announced on Sunday that he will resign, bowing to mounting pressure from within the ruling Liberal Democratic Party (LDP) after successive election defeats left his government in a weakened state. His 11-month tenure will end with the party preparing for another leadership contest in the coming weeks, throwing Japan into fresh political uncertainty.At a press conference in Tokyo, Ishiba explained that negotiations with Washington over tariffs , which he had labelled a “national crisis”, had reached a milestone, providing what he saw as the right moment to step aside. “I’ve always said I will decide what to do in an appropriate timing. With US tariffs negotiation reaching a certain phase, I believe now is the appropriate timing,” he said, as quoted by The Japan Times. “I decided to give way to the next generation.”Ishiba, 68, took office last October after finally winning the LDP presidency on his fifth attempt, but he struggled to steady the party after a disastrous Lower House election soon after. In July, the ruling coalition with Komeito lost its majority in the Upper House, intensifying calls for him to accept responsibility.

Why Ishiba was forced out

For weeks, Ishiba had resisted demands from LDP veterans and rivals, warning that his departure would risk a “political vacuum” when Japan faced economic headwinds, fractious US relations, and surging living costs. Yet as pressure mounted, his options narrowed.Party secretary-general Hiroshi Moriyama resigned last week after the Upper House defeat, further weakening Ishiba’s position. By Saturday, Agriculture Minister Shinjiro Koizumi and former Prime Minister Yoshihide Suga, long-time party powerbrokers , reportedly urged him to step down before an internal vote scheduled for Monday that was shaping up as a de facto no-confidence motion.Polls underscored the mood: a Yomiuri survey showed 21 prefectural chapters backing an early leadership contest against just nine opposed, while more than 160 lawmakers supported bringing the election forward. With Ishiba’s resignation, the vote has been cancelled, but the LDP will now need to hold a leadership election to choose his successor.

What comes next for Japan

The race to replace Ishiba is expected to be fierce, with several figures already manoeuvring. Sanae Takaichi, a conservative former economic security minister, is likely to run again after falling short last year. Koizumi, seen as a fresh face who could broaden the party’s appeal to younger voters, is also considered a leading contender. Chief Cabinet Secretary Yoshimasa Hayashi and former minister Takayuki Kobayashi may also enter the race.Whoever wins will inherit a fractured party without a majority in either chamber of parliament , a rarity for the LDP, which has dominated Japanese politics almost continuously since 1955. The next leader will need to work with opposition parties to pass legislation or risk paralysis. A snap lower house election to consolidate power is possible, but fraught with risk after voters punished Ishiba over inflation, especially soaring rice prices.Japan’s economic challenges loom large. Although Ishiba secured a reduction in US auto tariffs from 27.5% to 15%, lingering trade tensions remain. Investors fear further instability could unsettle markets, with the yen and government bonds already under pressure.





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