Japanese Prime Minister Shigeru Ishiba is facing mounting calls to resign after a stinging election loss, just as U.S. President Donald Trump announced a landmark $550 billion trade deal with Japan.
What Happened: On Wednesday, senior executives of Japan's ruling Liberal Democratic Party said that Ishiba's resignation is now seen as inevitable following the coalition's poor performance in Sunday's House of Councillors election, reported Japanese newspaper The Mainichi.
The prime minister is expected to make a final decision in August amid rising discontent within party ranks.
However, previously, the BBC reported that Ishiba stated he has no plans to resign and will focus on trade negotiations.
At the time of writing, markets were responding positively to the trade deal announcement, with the Nikkei 225 surging over 3% to a new 52-week high.
Why It's Important: Japan's ruling coalition lost its majority in the upper house after a closely contested election. The coalition of the LDP and Komeito secured only 47 of the 50 seats needed to retain control.
The loss, following last year's lower house defeat, weakens the coalition's political influence.
Meanwhile, Trump revealed on Tuesday that the U.S. has reached a sweeping trade agreement with Japan. He said the deal will bring $550 billion in Japanese investment to the U.S., with America claiming 90% of the profits.
Trump said the agreement includes Japanese market access for U.S. cars, trucks, rice, and agricultural products, along with reciprocal 15% tariffs on imports.
The deal follows Trump's earlier threats to impose tariffs as high as 35% on Japanese goods if no deal was reached by August 1.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
