
Japan PM Ishiba vows to stay on after bruising election defeat
The embattled premier told a news conference he would remain in office to oversee tariff talks with the United States and other pressing matters such as rising consumer prices that are straining the world's fourth-largest economy.
"I will stay in office and do everything in my power to chart a path toward resolving these challenges," Ishiba said, adding that he intended to speak directly with US President Donald Trump as soon as possible and deliver tangible results.
Analysts say his days may be numbered, having also lost control of the more powerful Lower House in elections last year and shedding votes on Sunday to opposition parties pledging to cut taxes and tighten immigration policies.
"The political situation has become fluid and could lead to a leadership change or the reshuffling of the coalition in coming months, but Prime Minister Shigeru Ishiba will likely stay to complete the tariff negotiations with the US for now," said Oxford Economics' lead Japan economist Norihiro Yamaguchi.
Facing a voter backlash over rising consumer prices, investors fear his administration will now be more beholden to opposition parties advocating for tax cuts and welfare spending that the world's most indebted country can ill afford.
The 68-year-old leader said he had no plans to expand his coalition but would work with opposition parties to address voter concerns about inflation. He cautioned, though, that tax changes would not deliver the immediate help households need.
Markets in Japan were closed for a holiday on Monday, although the yen strengthened and Nikkei futures rose slightly, as the election results appeared to be priced in.
Yields on Japanese government bonds sold off sharply ahead of the ballot as polls showed the ruling coalition - which had been calling for fiscal restraint - was likely to lose its majority in the upper house.
Adding to the economic anxiety, Ishiba's lack of progress in averting tariffs set to be imposed by its biggest trading partner, the US, on Aug 1 appears to have frustrated some voters.
"Had the ruling party resolved even one of these issues, it (its approval rate) would have gone up, but we didn't feel anything and it seems like the US would continue to push us around," Hideaki Matsuda, a 60-year-old company manager, said outside Tokyo's bustling Shinjuku station on Monday morning.
Japan's chief tariff negotiator Ryosei Akazawa departed for trade talks in Washington on Monday morning, his eighth visit in three months.
POPULIST POLITICS
Ishiba's Liberal Democratic Party (LDP), which has ruled Japan for most of its post-war history, and coalition partner Komeito returned 47 seats, short of the 50 seats it needed to ensure a majority in the 248-seat upper chamber in an election where half the seats were up for grabs.
The leader of the main opposition Constitutional Democratic Party (CDPJ), Yoshihiko Noda, said on Sunday he is considering submitting a vote of no-confidence in the Ishiba administration as the result showed it did not have voters' trust.
The CDPJ returned 22 seats in the ballot, finishing second.
Some senior LDP lawmakers were also quietly voicing doubts over whether Ishiba should stay, according to local media reports on Monday.
Among them was former prime minister Taro Aso, leader of a powerful faction within the ruling party, who said he "couldn't accept" Ishiba staying on, Japan's TV Asahi reported.
Senior party members, including Aso, met on Sunday evening to discuss whether Ishiba should resign, Sankei newspaper reported.
"It is natural that there are various opinions within the party," Ishiba said, when asked about the members of his party calling for his resignation.
The far-right Sanseito party clocked the biggest gains of the night, adding 14 seats to one elected previously.
Launched on YouTube during the pandemic by spreading conspiracy theories about vaccinations and a cabal of global elites, the party found wider appeal with its "Japanese First" campaign and warnings about a "silent invasion" of foreigners.
Dragging once-fringe rhetoric into the mainstream, its success could mark the arrival of populist politics in Japan, which until now has failed to take root as it has in the US and western Europe.
Sanseito's party leader Sohei Kamiya, a former supermarket manager and English teacher, has previously pointed to Germany's AfD and Reform UK as a possible blueprint for future success.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles

Straits Times
25 minutes ago
- Straits Times
US judge reaffirms nationwide injunction blocking Trump executive order on birthright citizenship
FILE PHOTO: U.S. President Donald Trump speaks to the media, after the U.S. Supreme Court dealt a blow to the power of federal judges by restricting their ability to grant broad legal relief in cases as the justices acted in a legal fight over President Donald Trump's bid to limit birthright citizenship, in the Press Briefing Room at the White House in Washington D.C., June 27, 2025. REUTERS/Ken Cedeno/File Photo WASHINGTON - A federal judge in Massachusetts ruled on Friday that a nationwide injunction he issued in February that blocked President Donald Trump's executive order limiting birthright citizenship should remain in place. In a written ruling, U.S. District Judge Leo Sorokin in Boston said his earlier nationwide injunction was the only way to provide complete relief to a coalition of Democratic-led states that brought the lawsuit before him, rejecting the Trump administration's argument that a narrower ruling was warranted because of a June decision from the U.S. Supreme Court. Sorokin wrote that the evidence before him "does not support a finding that any narrower option would feasibly and adequately protect the plaintiffs from the injuries they have shown they are likely to suffer if the unlawful policy announced in the Executive Order takes effect during the pendency of this lawsuit." The White House and Department of Justice did not immediately respond to requests for comment. New Jersey Attorney General Matthew J. Platkin, a Democrat, said in a statement that the states were thrilled with the decision. "American-born babies are American, just as they have been at every other time in our nation's history. The president cannot change that legal rule with the stroke of a pen.' The Supreme Court's June 27 ruling in litigation over Trump's birthright citizenship order limited the ability of judges to issue so-called "universal" injunctions -- in which a single district court judge can block enforcement of a federal policy across the country -- and directed lower courts that had blocked the Republican president's policy nationally to reconsider the scope of their orders. Top stories Swipe. Select. Stay informed. Singapore SMRT to pay lower fine of $2.4m for EWL disruption; must invest at least $600k to boost reliability Singapore MRT service changes needed to modify 3 East-West Line stations on Changi Airport stretch: LTA Singapore S'pore could have nuclear energy 'within a few years', if it decides on it: UN nuclear watchdog chief Asia 'Nothing like this has happened before': At least 16 dead as Thai-Cambodian conflict continues Life 'Do you kill children?': Even before independence, S'pore has always loved its over-the-top campaigns Singapore Lung damage, poor brain development, addiction: What vaping does to the body Singapore Tipsy Collective sues former directors, HR head; alleges $14m lost from misconduct, poor decisions Singapore Kopi, care and conversation: How this 20-year-old helps improve the well-being of the elderly But the ruling contained exceptions allowing courts to potentially still block it across the country again. That has already allowed a judge in New Hampshire to once again halt Trump's order from taking effect by issuing an injunction in a nationwide class action of children who would be denied citizenship under the policy. A federal appeals court in California on Wednesday said Trump's executive order violated the citizenship clause of the U.S. Constitution's 14th Amendment by denying citizenship to many persons born in the U.S., and blocked its enforcement nationwide. Trump signed the executive order on January 20, his first day back in office, as part of his crackdown on immigration. The executive order directed federal agencies to refuse to recognize the citizenship of U.S.-born children who do not have at least one parent who is an American citizen or lawful permanent resident, also known as a "green card" holder. It was swiftly challenged in court by Democratic attorneys general from 22 states and immigrant rights advocates who argued it was unconstitutional. Last week, the states had argued at a hearing before Sorokin that a nationwide injunction was essential. They said restricting birthright citizenship in some states but not others would make it difficult to administer federal benefits programs like Medicaid. A patchwork approach would also lead to confusion among immigrant parents and a surge of people moving to states where Trump's executive order is on hold, straining resources, they argued. The Justice Department had countered that the states, by continuing to advocate for universal relief, had failed to come to grips with the Supreme Court's decision. REUTERS
Business Times
25 minutes ago
- Business Times
US: S&P 500 closes at 5th straight record
[NEW YORK] The S&P 500 and Nasdaq finished at fresh all-time records on Friday (Jul 25) amid optimism over US trade deals, concluding a winning week on a positive note. Markets stayed hopeful that US President Donald Trump's trade deal with Japan this week will be followed by accords with other major trade partners, averting major tariffs due at the White House's Aug 1 deadline. Investors have also greeted generally benign data that suggest the US economy is on solid ground, said Angelo Kourkafas of Edward Jones. 'That might change in the months ahead, but for now, we have an economy that is holding up,' Kourkafas said. The broad-based S&P 500 finished at 6,388.64, up 0.4 per cent, its fifth straight closing record. The tech-rich Nasdaq Composite Index rose 0.2 per cent to 21,108.32, closing at a third straight record, while the Dow Jones Industrial Average climbed 0.5 per cent to 44,901.92. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Besides trade negotiations, investors are looking ahead to a heavy earnings calendar next week, with Apple, Amazon and other large tech companies reporting results. Those are the market's largest companies, 'so any hiccups there will have an implication for the broader market,' Kourkafas said. Among individual companies, Intel dropped 8.5 per cent after reporting a US$2.9 billion loss as it announced further cost-cutting initiatives. The company said it has cut about 15 per cent of its workforce. But Deckers Outdoor surged 11.4 per cent after reporting better than expected results. Revenues at the footwear retailer jumped 16.9 per cent to US$964.5 million. AFP
Business Times
25 minutes ago
- Business Times
Trump's self-defeating trade agenda
WHILE US President Donald Trump pursued a range of protectionist policies during his first term, the economic chaos and uncertainty he has unleashed since returning to the White House and launching his global trade war make those earlier efforts look mild by comparison. Railing against countries that run trade surpluses with the US, Trump has vowed to impose 'reciprocal tariffs' until all of America's trade deficits are eliminated. Yet he has imposed sweeping tariffs even on countries with which the US runs a trade surplus, such as Australia. The Trump administration has cited a wide range of reasons for its tariff hikes beyond reducing bilateral trade deficits, including national security, job creation and raising government revenue. The president and his advisers claim that other countries will be forced to negotiate and ultimately lower their own tariffs on US goods. But the recent deal between the US and the United Kingdom, which imposes a 10 per cent levy on most British exports, shows that even Trump's 'reduced' tariffs remain historically high. The unpredictability of his trade policies poses a grave threat to the global economy. Trump's tariff announcements have been followed by numerous delays and revisions, and his deadlines for finalising new trade deals have come and gone, only to be extended again. This erratic trade policy, combined with his apparent reluctance to follow through on his threats, has given rise to the nickname 'Taco', or 'Trump Always Chickens Out'. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up So far, the Trump administration has secured new trade agreements with only a handful of countries, and even those have come with unexpected conditions. Earlier this month, for example, Trump announced a trade deal with Vietnam that imposes a 20 per cent tariff on Vietnamese imports, but only if Vietnam eliminates its own tariffs on US goods and its exports contain no Chinese components; otherwise, the rate jumps to 40 per cent. While that's lower than Trump's original rate of 46 per cent, it's still far higher than the 11 per cent that Vietnamese policymakers reportedly believed they had negotiated. Indonesia, for its part, accepted a 19 per cent tariff in exchange for granting most US goods duty-free access to its domestic market. So much for fairness and reciprocity. Similarly, tariffs on Chinese goods jumped from 10 per cent to 145 per cent, then were returned to 10 per cent – at least temporarily. But the average US tariff on Chinese imports still stands at 51.1 per cent, and Trump could raise it again if the two countries fail to reach a trade deal by Aug 12. Trump has also threatened to impose 30 per cent tariffs on the European Union (EU) and Mexico. While EU policymakers are hoping to avoid the tariffs through negotiations, they are reportedly considering retaliatory 'anti-coercion' measures of their own. Adding to the uncertainty are the president's tariff hikes and new restrictions on commodity imports. Since January, the US has raised steel, aluminium and copper tariffs to 50 per cent and imposed a 25 per cent tariff on auto parts. Although he claims that his deal with China will ensure US access to rare earth minerals, their status remains in limbo amid ongoing trade tensions. More than one million different tariff rates The entire process has been marked by confusion and inconsistency. For example, the administration imposed tariffs on imported urea – a key fertiliser input – from Qatar and Algeria, but not from Russia. As a result, by May, Russia was supplying 64 per cent of urea imports to the US, double its previous share. As if that weren't enough, some of Trump's actions serve no discernible economic purpose. Most notably, he has threatened to hit Brazil with 50 per cent tariffs to pressure its government not to prosecute former president – and Trump ally – Jair Bolsonaro. Likewise, he reimposed tariffs on aluminium and steel imports, despite clear evidence that job losses due to increases in input costs were far greater than the employment gains in protected industries during his first term. When tariffs vary by country and can change at a moment's notice, chaos is inevitable. There are currently more than 10,000 tariff classifications covering imports from over 160 countries. This means there could be more than one million different tariff rates, leaving customs officials and shippers to navigate an increasingly unmanageable system. Many of Trump's tariffs are ostensibly intended to strengthen national security, but it's difficult to see how targeting allies like Canada helps achieve that goal, especially since cutting off foreign suppliers would only drive up the cost of defence procurement. Moreover, allied countries could help the US increase production of certain goods when necessary, thereby supporting domestic capacity. Trump's tariffs will harm the US economy in several significant ways. For starters, contrary to his claims, raising tariffs does not reduce trade deficits. In fact, it undermines investment and trade, as well as increases the real cost of imported goods and provokes retaliation – hurting exports. The irony is that increased domestic production, spurred by protectionist policies, reduces the volume of imports – and with it, tariff revenues. In some cases, tariffs work at cross purposes: steel tariffs, for example, raise input costs for automakers. Consequently, tariff revenues will likely fall far short of the administration's expectations. As for job creation, some firms benefiting from tariff protection may invest in automation to replace human workers, especially in industries that rely on low-skilled labour. By contrast, firms in import-competing or export-oriented sectors are likely to respond to ongoing uncertainty over future tariffs by delaying capacity expansion. Another troubling consequence of the current tariff regime is the increasingly visible rise of crony capitalism, as a steady stream of foreign officials and American business executives descends on Washington to lobby for tariff exemptions and protections. Six months into his second presidency, it is abundantly clear that there is no coherent rationale behind Trump's tariffs. They are costly and haphazard, undermining economic growth and turning the free market that once drove US productivity into a breeding ground for rent-seeking and corruption. PROJECT SYNDICATE The writer, a former World Bank chief economist and former first deputy managing director of the International Monetary Fund, is senior research professor of international economics at the Johns Hopkins University School of Advanced International Studies and senior fellow at the Center for International Development at Stanford University