PM Shigeru Ishiba Faces Key Upper House Test Amid Rising Prices, U.S. Tariffs
NOOR MOHMMED
19/Jul/2025

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Japan’s PM Ishiba fights tough upper house election amid inflation, U.S. tariffs, and a restless electorate.
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His government’s minority status forces compromises with opposition, slowing economic response.
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Populist and anti-foreign parties gain ground, capitalizing on discontent over prices and inequality.
Tokyo, July 19, 2025 — Japan's Prime Minister Shigeru Ishiba is facing one of the most critical moments of his political career as the nation heads into the Upper House elections on Sunday, July 20. Grappling with soaring prices, food shortages, and economic pressure from U.S. tariffs, Ishiba’s leadership is under intense scrutiny, and the outcome of the vote could reshape Japan’s political landscape.
While the upcoming election is not expected to immediately unseat the government, a poor showing by Ishiba’s Liberal Democratic Party (LDP) would deepen doubts about his ability to govern and revive the economy — or even remain in power.
๐งญ Context: How Did It Come to This?
Shigeru Ishiba came to power promising to clean up the corruption-tainted legacy of his predecessors and rebuild public trust. However, his government has faced a series of setbacks, including:
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An embarrassing loss in the lower house elections last October, where the LDP lost ground in traditionally loyal districts.
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Mounting voter frustration over high living costs, worsened by inflation in basic goods like rice, a cultural and dietary staple.
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Difficulties in navigating trade relations with the United States, especially under President Donald Trump’s renewed tariff pressure on Japanese exports.
Ishiba's team has struggled to deliver fast economic relief, in part because his minority government must rely on opposition support to pass any legislation in the Diet (Japan's parliament).
๐น Inflation, Wages and Economic Fatigue
Japanese households are facing their most severe price shocks in years, with food, energy, and transportation costs all sharply up. Government relief efforts have so far failed to produce wage increases or restore purchasing power.
“Rice prices are going up. Salaries are not,” said a Tokyo office worker interviewed by NHK. “We’re expected to tighten belts while politicians live in comfort.”
The perception of slow government response, coupled with the LDP's history of scandals, has weakened public confidence in Ishiba’s leadership — despite his reputation as a relatively clean and policy-focused politician.
๐ Trump’s Tariff Push Adds Pressure
Compounding domestic woes is Trump’s aggressive trade stance, targeting Japan with higher tariffs on autos and electronics. The move is designed to pressure Japan into revising its trade terms, but Ishiba has limited leverage to counter it without risking diplomatic fallout.
These tariffs have pushed exporters into uncertainty, forcing manufacturers to pass costs to consumers and worsening inflation across the board.
โ๏ธ A Weak Mandate, Strong Opposition
With Ishiba leading a minority government, every legislative decision involves fragile negotiations. His administration has been forced to water down or delay economic proposals to gain even minimal support from the fragmented opposition.
This impasse is seen as a key reason why effective anti-inflation policies haven’t been implemented swiftly.
Political analysts believe that even if Ishiba survives the election, a weaker mandate could embolden party rivals to call for a leadership change before year-end.
๐จ Populists on the Rise
The biggest political threat may not come from the traditional opposition but from new populist parties tapping into voter discontent. These emerging groups are gaining momentum by pushing:
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Anti-foreign policies
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A return to conservative family values
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Resistance to gender equality and diversity measures
Such rhetoric resonates with a segment of voters who feel left behind by globalization and rapid social change, particularly in rural Japan.
One such party — Japan First — is polling in double digits for the first time and is expected to win multiple seats in this election, shaking up the Upper House’s power dynamics.
๐ณ๏ธ What’s at Stake on July 20?
The Upper House election does not determine the government directly, but it shapes the legislative path forward. If Ishiba’s LDP performs poorly:
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He could face internal revolt within the party.
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Opposition parties may demand snap elections or leadership changes.
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Economic policy may face further delays or derailment.
A good performance, however, could strengthen Ishiba’s hand and offer him political breathing space to re-focus on economic reforms and international diplomacy.
๐ง Ishiba’s Challenge: Rebuild Trust, Fast
Political commentators say Ishiba’s strength is in policy depth and integrity, but he lacks the charisma to rally public support in crisis moments.
“If Ishiba fails to connect with everyday Japanese and address their financial pain directly, this could be the last election he oversees,” said Professor Ayako Fukuda of Waseda University.
๐ Conclusion
As Japan heads into Sunday’s upper house vote, the stakes for Prime Minister Shigeru Ishiba and the country’s future could not be higher. Facing inflation, international pressure, and populist insurgency, the election outcome will likely determine whether Ishiba can reset his government’s course — or become yet another casualty of Japan’s turbulent political era.
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