The Japanese Prime Minister announced his resignation on Sunday, in order to avoid splitting the ruling Liberal Democrats.
His departure is plunging Japan, the fourth-largest economy in the world and a key US ally, into fresh political uncertainty amid rising costs of living, US policy reforms, growing regional tensions and the economic impact of US tariffs.
Since Isba took office last year, his LDP-led coalition has lost a majority in both chambers of parliament amid voter rage over the cost of living, including a historic defeat in Japan’s Senate elections in July.
He was faced with calls for resignation, which he had ruled Japan for almost all of the postwar period, mainly from right-wing enemies within his own party.
The initial leadership election or Isba’s resignation demands gained even more traction last week when the LDP adopted a review of the Senate’s losses in July, calling for a “complete overhaul” for the party.
His party was scheduled to vote on Monday to hold an early leadership election, a virtual, non-confidence motion against Isba, if approved.
Isba finalised details of its trade agreement with the US last week. Under that, Japan pledged to invest $550 billion in exchange for lower tariffs in the automotive sector.
