Possible Trump Tariff Deal With Japan Battered By Ishiba’s Election Loss

Japanese Prime Minister Shigeru Ishiba said he will remain in office to oversee trade negotiations with U.S. President Donald Trump’s administration, despite suffering a major election defeat just as the deadline to finalize a tariff deal draws near, Shane Croucher reported for Newsweek.

Ishiba’s administration, plagued by past corruption scandals and sagging approval ratings, has been forced to make concessions to the opposition to pass legislation.

The setback cost Ishiba’s coalition its majority in Japan’s upper house, leaving the government with a minority in both chambers of the Diet.

The result threatens to complicate efforts to ratify a pending U.S.-Japan trade agreement that requires legislative approval.

If no deal is reached, Japanese imports to the U.S.—primarily vehicles, machinery, and electronics—will face a 25% tariff, potentially driving up prices for American consumers and straining ties with a key Pacific ally.

The ruling Liberal Democratic Party (LDP) and its junior coalition partner Komeito fell three seats short of the 248-seat upper house majority. The LDP, however, remains the largest party.

The coalition had already lost its majority in the lower house in October 2024.

Ishiba’s administration, plagued by past corruption scandals and sagging approval ratings, has been forced to make concessions to the opposition to pass legislation.

It has also struggled to implement effective measures to address rising prices and falling wages—issues exacerbated by the soaring cost of rice, a staple of the Japanese diet, the Associated Press also reported.