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Japan''s Ishiba says he''ll stay in office to tackle rising prices and U.S. tariffs despite election loss

Japan's Prime Minister Ishiba Vows to Remain in Office Amid Election Setback, Pledges Focus on Economic Challenges and U.S. Trade Threats

Tokyo, Japan – In a defiant stance following a significant electoral defeat, Japanese Prime Minister Shigeru Ishiba has declared his intention to stay in power, emphasizing the need to address pressing domestic and international economic issues. Despite his ruling Liberal Democratic Party (LDP) and its coalition partner suffering a loss of majority in the lower house of parliament, Ishiba asserted that stepping down now would be irresponsible given the urgent challenges facing the nation, including soaring consumer prices and the specter of new U.S. tariffs under a potential second term for President-elect Donald Trump.

The announcement came during a press conference in Tokyo, where Ishiba outlined his priorities for the coming months. "I will not run away from my responsibilities," he stated firmly, underscoring his commitment to stabilizing Japan's economy amid global uncertainties. The prime minister's decision reflects the turbulent political landscape in Japan, where the LDP has dominated for decades but now faces its most precarious position in years. The recent snap election, called by Ishiba shortly after he assumed office in October, was intended to solidify his mandate but instead resulted in a rebuke from voters frustrated with political scandals, economic stagnation, and perceived inaction on cost-of-living pressures.

Ishiba's resolve to cling to power is rooted in a broader strategy to navigate Japan's economic woes. Rising prices have been a persistent headache for Japanese households, with inflation rates climbing to levels not seen in decades. Official data from Japan's statistics bureau indicates that consumer prices rose by 2.5% in October, driven by higher energy costs, imported goods, and a weakening yen. This inflationary surge has eroded purchasing power, particularly for low- and middle-income families, leading to widespread discontent. Ishiba highlighted plans to introduce targeted subsidies for energy bills, enhance support for small businesses, and push for wage increases through negotiations with labor unions and corporations. "We must act decisively to alleviate the burden on our citizens," he said, promising a supplementary budget to fund these initiatives.

Compounding these domestic pressures is the looming threat of U.S. trade policies. With Donald Trump's victory in the U.S. presidential election, concerns have mounted over his campaign promises to impose steep tariffs on imports, including from key allies like Japan. Trump has repeatedly criticized trade imbalances, vowing to slap tariffs of up to 20% on foreign goods to protect American industries. For Japan, a major exporter of automobiles, electronics, and machinery to the U.S., such measures could deliver a severe blow. The Japanese auto sector alone accounts for a significant portion of bilateral trade, and tariffs could disrupt supply chains and increase costs for consumers on both sides of the Pacific.

Ishiba addressed this directly, stating that his administration would prioritize diplomatic efforts to mitigate the impact. "We will engage closely with the incoming U.S. administration to ensure that our economic partnership remains strong and mutually beneficial," he explained. This approach echoes Japan's historical strategy of close alignment with the U.S., particularly on security matters through the U.S.-Japan alliance. However, economic frictions have periodically strained relations, as seen during Trump's first term when he withdrew from the Trans-Pacific Partnership and imposed tariffs on steel and aluminum imports from Japan. Ishiba's team is reportedly preparing contingency plans, including diversifying export markets to Southeast Asia and Europe, and bolstering domestic manufacturing resilience.

The political context of Ishiba's decision cannot be overstated. The LDP, in coalition with the Buddhist-backed Komeito party, secured only 215 seats in the 465-seat lower house, falling short of the 233 needed for a majority. This marks the first time since 2009 that the LDP has lost its outright control, forcing Ishiba to seek alliances with opposition parties to pass legislation and maintain governance. Potential partners include the Democratic Party for the People (DPP) and the Japan Innovation Party, both of which have expressed willingness to cooperate on economic reforms but demand concessions on issues like political ethics and social welfare.

Opposition leaders have been quick to criticize Ishiba's stance. Yoshihiko Noda, head of the main opposition Constitutional Democratic Party of Japan (CDPJ), which gained seats in the election, accused the prime minister of ignoring the electorate's message. "The people have spoken against the LDP's arrogance and scandals," Noda said in a statement. The election was marred by revelations of financial improprieties within the LDP, including undeclared funds and slush fund scandals that eroded public trust. Ishiba, who campaigned on a platform of transparency and reform, now faces the irony of leading a weakened party amid calls for his resignation.

Despite these headwinds, Ishiba's background as a veteran politician and defense expert may bolster his position. A long-time LDP member known for his hawkish views on security and rural revitalization, Ishiba ascended to the premiership after a party leadership contest following the resignation of Fumio Kishida. His rural roots and focus on decentralizing power from Tokyo have resonated with some voters, even as urban areas swung toward the opposition. Analysts suggest that Ishiba's strategy could involve calling a special parliamentary session to confirm his leadership and negotiate coalition deals, potentially stabilizing his government in the short term.

Economically, Japan is at a crossroads. The Bank of Japan (BOJ) has been gradually tightening monetary policy after years of ultra-loose stimulus, aiming to combat deflation but risking further yen depreciation. The currency has weakened significantly against the dollar, exacerbating import costs and contributing to inflation. Ishiba's administration is expected to coordinate closely with the BOJ to balance growth and price stability. Additionally, with global events like the ongoing Russia-Ukraine war and Middle East tensions driving up commodity prices, Japan—lacking natural resources—remains vulnerable.

On the international front, Ishiba's pledge to tackle U.S. tariffs aligns with broader efforts to strengthen Japan's role in regional security and trade. Japan has been a key player in initiatives like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Quad alliance with the U.S., India, and Australia. By addressing trade threats head-on, Ishiba aims to position Japan as a reliable partner while safeguarding its export-driven economy.

Public reaction to Ishiba's announcement has been mixed. Polls conducted by Japanese media outlets show a divided populace: while some appreciate his determination to confront economic issues, others view it as stubbornness in the face of electoral rejection. Protests in Tokyo have called for fresh elections, with demonstrators chanting slogans against political entrenchment. Business leaders, however, have welcomed the continuity, fearing that a leadership vacuum could exacerbate market volatility.

Looking ahead, Ishiba's tenure will be tested in the upper house, where the LDP maintains a stronger position, and through upcoming budget deliberations. If he can forge effective coalitions and deliver on economic promises, he may regain momentum. Failure to do so could lead to further instability, potentially triggering another election or a no-confidence vote.

In essence, Ishiba's decision to remain in office underscores the high stakes for Japan at a time of economic fragility and geopolitical shifts. By focusing on rising prices and U.S. tariffs, he seeks to steer the nation through turbulent waters, but his path forward is fraught with political risks. As Japan grapples with these challenges, the world watches to see if this veteran leader can turn the tide or if the winds of change will sweep him aside.

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Read the Full PBS Article at:
[ https://www.pbs.org/newshour/world/japans-ishiba-says-hell-stay-in-office-to-tackle-rising-prices-and-u-s-tariffs-despite-election-loss ]