Japan’s PM Shigeru Ishiba Steps Down After Election Rout

Japanese Prime Minister Shigeru Ishiba announced his resignation at a press conference in Tokyo on Sept 7.

PHOTO: REUTERS

TOKYO, Japan — In a stunning turn of events, Prime Minister Shigeru Ishiba announced his resignation on Sunday, September 7, 2025, just weeks after his ruling Liberal Democratic Party (LDP) suffered a crushing defeat in national elections. The move comes as a direct fallout from the electoral debacle that shattered the LDP's long-held dominance and plunged Japan's political landscape into uncertainty.

Ishiba, who assumed office in October 2024 following Fumio Kishida's abrupt departure amid a slush fund scandal, addressed the nation from his official residence, expressing deep regret over the election results. "I take full responsibility for the party's poor performance and the loss of public trust," he stated, his voice somber. "To allow the LDP to regroup and restore faith in our leadership, I will step down immediately." Ishiba, 68, had been a key figure in the party for decades, known for his defense expertise and calls for constitutional reform to bolster Japan's military capabilities.

The elections, held on August 31, 2025, saw the LDP and its coalition partner, Komeito, lose their parliamentary majority for the first time since 2009. The opposition Constitutional Democratic Party (CDP), led by Yoshihiko Noda, capitalized on voter dissatisfaction with economic stagnation, rising inflation, and lingering corruption allegations within the LDP. Exit polls indicated that scandals involving unreported political funds and Ishiba's perceived mishandling of a yen depreciation crisis were major factors in the rout, with the LDP securing only 180 seats in the lower house—down from 261.

The resignation paves the way for a leadership election within the LDP, expected to occur within the next two weeks. Potential successors include former Prime Minister Taro Aso, hawkish policy chief Sanae Takaichi, and rising star Shinjiro Koizumi, son of former leader Junichiro Koizumi. Analysts predict a contentious battle, as the party grapples with how to regain ground ahead of upper house elections in 2026.

International allies expressed concern over the instability. U.S. President Joseph Biden, in a statement from the White House, affirmed continued partnership with Japan, emphasizing the importance of the U.S.-Japan security alliance in the Indo-Pacific. "We look forward to working with Japan's next leadership to counter regional threats," Biden said, alluding to tensions with China and North Korea.

Domestically, the yen weakened slightly against the dollar following the announcement, and the Nikkei 225 stock index dipped 1.2% at opening. Business leaders urged swift action to address economic woes, including subsidies for households battered by high energy costs and a sluggish recovery from the COVID-19 era.

Opposition leaders welcomed Ishiba's exit but called for broader reforms. CDP chief Noda remarked, "This is a victory for democracy, but the real work begins now to hold the government accountable." Protests erupted in Tokyo's Shibuya district, with demonstrators chanting against LDP corruption and demanding transparency.

Ishiba's brief tenure was marked by bold but controversial moves, including increased defense spending to 2% of GDP and diplomatic overtures to mend ties with South Korea. However, his administration struggled with approval ratings hovering below 30%, exacerbated by natural disasters like a series of earthquakes in the Tohoku region earlier this year.

As Japan navigates this political vacuum, the focus shifts to forming a new government. With no clear majority, coalition talks could drag on, potentially paralyzing policymaking at a time when the country faces pressing issues like an aging population and climate vulnerabilities.

The resignation underscores the fragility of Japan's one-party rule and signals a potential realignment in its politics. For Ishiba, once seen as a reformer, it marks a bitter end to his premiership, leaving his legacy tied to the very election that toppled him.