Japanese Prime Minister Shigeru Ishiba is expected to resign next month after a major election defeat, according to local media and a source close to him — despite his public denial of the reports — shortly after finalising a key trade deal with U.S. President Donald Trump.
Japanese Prime Minister Shigeru Ishiba plans to step down following a bruising upper house election defeat, a source told Reuters, as the embattled premier announced a long-sought trade deal with U.S. President Donald Trump, despite denying the repots from local press.
The 68-year-old leader denied media reports claiming he had already made the decision, calling them “completely unfounded.” However, the source, speaking on condition of anonymity, said Ishiba intends to resign in August, after finalising a long-awaited trade deal with U.S. President Donald Trump.
Ishiba and Trump on Tuesday announced an agreement that reduces tariffs on Japanese auto exports and spares Tokyo from further penalties on other goods. The deal, seen as crucial for Japan’s auto sector, was a political priority for Ishiba, who reportedly delayed his resignation to avoid disrupting negotiations.
His departure — less than a year after taking office — is expected to trigger a leadership contest within the ruling Liberal Democratic Party (LDP). The party is under pressure following back-to-back losses in both chambers of parliament, and rising competition from new right-wing challengers.
One such rival, the “Japanese First” Sanseito party, made significant gains in Sunday’s vote, increasing its upper house seats from one to 14. The group has won support with its promises to limit immigration, cut taxes, and offer economic relief to struggling households.
Ishiba had narrowly defeated conservative contender Sanae Takaichi in last year’s party leadership race. His successor will now face the immediate task of securing backing from opposition lawmakers to form a government, as the LDP lacks a majority in either house.
According to the source, the next prime minister is unlikely to call early elections, opting instead to rebuild party support before seeking a fresh mandate from voters.
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