Japanese Prime Minister Shigeru Ishiba announced his resignation Sunday, plunging the world’s fourth largest economy and a key U.S. ally into fresh political uncertainty amid rising living costs and growing tensions in the region.
“I have consistently stated that I do not intend to cling to this position, and that I would make a decision at the appropriate time after accomplishing what needed to be done,” he told a press conference.
Ishiba finalized details of a trade deal with the U.S. last week, under which Japan pledged $550 billion of investments in return for lower tariffs on its auto sector.
Ishiba called the Trump administration’s tariff measures a “national crisis,” but said negotiations had now reached a conclusion, allowing him to step aside.
“I believe this is precisely the appropriate timing,” he added. “I have therefore decided to step aside and make way for my successor.”
Ishiba said he had instructed his Liberal Democratic Party to hold an emergency leadership race, adding he would continue in the role until a successor was elected.
Since Ishiba took office last year, his LDP-led coalition lost its majority in elections for both houses of parliament amid voter anger over living costs, including an historic defeat in an election for Japan’s upper house in July.
He had faced growing calls to resign, mostly from right-wing opponents within his own party, which has governed Japan for almost all of the post-war era.
Ishiba said responsibility for the election results “rests with myself as the president of the party.”
Requests for an early leadership election or Ishiba’s resignation gained further traction last week when LDP adopted a review of its upper house loss in July, which called for “a complete overhaul” of the party.
His party were scheduled to vote Monday on holding an early leadership election, a virtual no-confidence motion against Ishiba if approved.
