September 7, 2025
Japanese prime minister resigns after July election losses as U.S.-Japan trade and defense ties face uncertainty
Political upheaval risks decades of Pacific security cooperation
September 7, 2025
Political upheaval risks decades of Pacific security cooperation
Prime Minister
Shigeru Ishiba announced his resignation on September 7, 2025, after his LDP-led coalition lost its majority in the House of Councillors on July 21, 2025, leaving the government without a Diet majority for the first time since the party's founding in 1955.
Bilateral U.S.-Japan trade totaled about $321.6 billion in 2024, according to BEA compilations, and Japan ranked among the top six U.S. trading partners that year rather than fourth.
The United States maintains roughly 53,600 active-duty military personnel assigned to Japan (official DoD personnel accounting), concentrated on Okinawa and key naval and air bases.
A U.S.-Japan trade framework announced July 22β23, 2025 includes an announced $550 billion Japanese investment initiative and sets a baseline reciprocal tariff of about 15% on many Japanese imports; it did not abolish all auto duties.
Japan had adopted a policy to raise defense-related spending toward 2% of GDP by fiscal 2027. The target predates Ishiba's tenure and the timetable has been discussed publicly by multiple administrations.
True or False: Japan's minority government will struggle to implement nuclear energy expansion needed for AI and semiconductor manufacturing.
True or False: Ishiba's resignation creates an opening for Japan to renegotiate the $550 billion trade deal terms.
The LDP's first upper house majority loss since 1955 coincided with Japan becoming the world's fourth-largest economy losing ground to Germany. Why did voters choose economic pain over political stability?
Ishiba resigned September 7, 2025 after the LDP lost its upper house majority for the first time since 1955. Why did rising living costs matter more to voters than the LDP's 70-year dominance?
Japanese voters delivered the LDP its worst upper house performance since 1955 despite the party's traditional advantages. Why did democracy finally punish the party for ignoring economic reality?
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