Japanese Prime Minister Shigeru Ishiba on Sunday announced his resignation as president of the Liberal Democratic Party, just weeks after its ruling coalition suffered a crushing defeat in a July election.
Ishiba signaled he had held off from resigning until his administration secured a trade deal with Washington, while also commending top trade negotiator Ryosei Akazawa.
Ishiba said at a press conference that he will not run in the LDP’s upcoming special election, according to comments translated by public broadcaster NHK. He will continue to maintain office until a successor is elected, Ishiba told reporters.
The former prime minister had faced growing calls to resign since his ruling coalition lost its majority in the upper house. Ishiba said on Sunday he took responsibility for the loss.
Ishiba’s resignation also comes just days after U.S. President Donald Trump signed an order implementing a late-July trade deal with Tokyo. The deal will see Japanese exports to the U.S. face a 15% tariff, lower than the 25% initially outlined by Trump.
His ouster comes amid turbulent times for the Japanese economy, which now faces tariff-related headwinds for its key export industries.
Sticky inflation, against a backdrop of steady private spending, is also expected to push the Bank of Japan into hiking interest rates.
The country now faces a leadership struggle in its ruling government, with a report from Reuters outlining LDP veteran Sanae Takaichi, Agriculture Minister Shinkiro Koizumi, and Chief Cabinet Secretary Yoshimasa Hayashi as possible candidates for prime minister.
Former Prime Minister Yoshihiko Noda leads the biggest opposition group to the LDP, the centre-left Constitutional Democrats.
Source :
https://www.investing.com/news/economy-news/japan-pm-shigeru-ishiba-steps-down-weeks-after-election-defeat-trade-deal-4227943
