Japanese Prime Minister Shigeru Ishiba announced he will make a final decision on resigning after reviewing a new trade deal with the United States and the implications of his party’s electoral defeat ([The Hindu]). Ishiba's Liberal Democratic Party and ally Komeito lost their majority in both houses—the upper house for the first time since 1955 and the lower house in 2024—leaving his government in minority and facing internal dissent.

Despite pressure, Ishiba stated he'll remain until the August 1 U.S.–Japan tariff agreement—negotiated by Trade Minister Ryosei Akazawa and brokered by President Trump—is fully assessed and implemented. The deal reduces auto tariffs from 25% to 15% and secures $550 billion in Japanese investment in U.S. sectors including semiconductors and autos, while excluding a tariff rollback on steel and aluminum.

Ishiba firmly denied media claims of a swift resignation—though speculation continues—emphasizing his focus on economic stability and avoiding political vacuums ahead of the trade deal’s activationStill, approval ratings have plummeted below 23%, with younger LDP members petitioning for a leadership change. Names like Sanae Takaichi, Takayuki Kobayashi, and Shinjiro Koizumi are emerging as potential successors.

As public unease grows over inflation, immigration, and economic stagnation, Ishiba’s next moves will shape Japan’s short-term governance and its ability to respond to mounting internal and external pressures.