Shigeru Ishiba Resigns as Japan’s Prime Minister Amid Party Turmoil and Economic Pressure

Japanese Prime Minister Shigeru Ishiba quit, saying the party required rejuvenation following a record electoral defeat. The Liberal Democratic Party (LDP), of which he was the leader, was routed in the July upper house elections, causing factional tensions and calls for a change of leadership.

Ishiba, who took office in October, was increasingly under pressure from hardline members of his party. He was attacked for having weak foreign policy, particularly on how to deal with the U.S. and China. His resignation comes soon after approving a $550 billion trade agreement with the U.S., which involved lower tariffs on Japanese automobile exports.

"I have been saying I would step down at the right time," Ishiba said at a news conference. "Now that the trade agreement has been signed, I think it is the right time to pass the baton."

The LDP is set to hold an extraordinary party leadership election, and Ishiba would remain as prime minister until a new leader is chosen. Potential candidates include fiscal conservative Sanae Takaichi and farm minister Shinjiro Koizumi.

Ishiba's resignation contributes to Japan's political instability, the world's fourth-largest economy, already in disarray with rising living costs and regional tensions. His resignation marks a sea change in Japanese politics, possibly ushering in a new path for the country at home and abroad.