Japanese Prime Minister Ishiba to Resign After Election Defeat

By Global Leaders Insights Team | Jul 23, 2025

Japan’s Prime Minister Shigeru Ishiba is reportedly stepping down by the end of August after his party, the Liberal Democratic Party (LDP), and its ally, Komeito, took a big hit in Sunday’s upper house election.

The coalition fell short, winning just 47 of the 50 seats needed to hold a majority in the 248-seat House of Councillors, a major blow to Ishiba’s leadership. Ishiba, who took over as prime minister in October 2024 after winning a tight party leadership race against Sanae Takaichi, has been under fire since the LDP struggled in both this election and last October’s lower house vote.

For the first time since 1955, the LDP lost control of both parliamentary chambers, leaving Ishiba’s government shaky and open to no-confidence votes. Some big names in the LDP, like former Prime Minister Taro Aso, have even called for him to step aside.

  • Japan PM Shigeru Ishiba to Resign After LDP’s Upper House Election Defeat
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Many Japanese voters are frustrated with rising costs, flat wages, and high social security payments. Opposition parties seized the moment, with the far-right Sanseito picking up 14 seats by appealing to nationalist sentiments with their “Japanese First” slogan. The Constitutional Democratic Party also did well, grabbing 22 seats. The LDP’s focus on tightening the budget didn’t sit well with people hoping for tax breaks and more support for families.

Ishiba had wanted to stay on to wrap up a trade deal with the United States, which lowers tariffs on Japanese cars from a proposed 25% to 15%. Now that the deal is done, signed alongside U.S. President Donald Trump, Ishiba reportedly told close aides he’d take responsibility for the election loss, according to the Yomiuri newspaper. He’s expected to meet with LDP heavyweights, including former prime ministers, to talk about his exit.

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Ishiba’s resignation will kick off a leadership race in the LDP, with a new prime minister likely in place by September. Japan now faces an uncertain time as it deals with economic struggles and ongoing trade talks.