It was supposed to be his moment of redemption. Instead, it became the humiliation that broke the Ishiba premiership.
On Sunday, 7th September, Japanese Prime Minister Shigeru Ishiba announced his resignation, just days after signing a sweeping trade pact with the United States that critics at home saw as a national surrender.
The deal lowered U.S. tariffs on Japanese cars from 25 percent to 15 percent, but at a punishing cost: Tokyo promised more than $550 billion in investments in America, ranging from farm imports to semiconductor plants to military hardware. In Washington, Donald Trump hailed it as proof of his “America First” clout. In Tokyo, it was viewed as one-sided, humiliating, and deeply unfair.
“The United States got everything it wanted. Japan got scraps,” fumed one opposition lawmaker. Newspapers called it “the most lopsided deal in decades.” On the streets, the sentiment was even sharper. “It feels like we’ve been bullied,” a 32-year-old Tokyo shopkeeper told a local broadcaster.
For Ishiba, already staggering under electoral defeats and crumbling approval ratings, the backlash was too much. The deal that he hoped would define his leadership instead became the tipping point that forced him to step aside.
A Short, Uneasy Tenure
Ishiba came to power in 2024 promising a reset after years of scandals under his predecessor, Fumio Kishida. For a brief moment, there was optimism. Commentators dubbed it “Ishibamania.”
But the shine wore off quickly. His Liberal Democratic Party (LDP) lost its majority in the October 2024 general election, then suffered another crushing defeat in this summer’s upper house vote. Economic pain compounded the political wounds: inflation eroded wages, growth stagnated, and ordinary Japanese felt squeezed.
By July 2025, his cabinet’s approval rating had sunk below 25 percent. Rivals within the LDP began circling, and his leadership looked fragile.
The Fatal Miscalculation
Amid the turmoil, Ishiba pinned his hopes on the U.S. trade talks. If he could strike a deal, he reasoned, it would show strong leadership and steady Japan’s most vital alliance.
But the outcome backfired spectacularly. To many, it looked like Tokyo had been forced to bankroll Trump’s America at the expense of Japanese taxpayers.
“Japan is not Washington’s piggy bank,” one LDP elder reportedly warned privately after the agreement was announced. Even Ishiba’s allies admitted the optics were disastrous. Instead of rallying support, the deal deepened disillusionment inside his party and across the country.
Leaving on His Own Terms
When he finally addressed the nation on Sunday, Ishiba tried to explain. He said he had waited to resign until the deal was concluded because otherwise “Japan would not have had a seat at the table.”
But he admitted the obvious: the anger was too great, the divisions too deep. He was leaving to avoid tearing his party apart.
Financial markets reacted instantly. The yen weakened, bond yields rose, and investors braced for another leadership vacuum in Tokyo.
What Happens Next
The LDP will now hold a leadership contest. Two names stand out: Sanae Takaichi, a fiery conservative with nationalist credentials, and Shinjiro Koizumi, a younger reformer with star power. Whoever wins will inherit a fractured party and may be forced to call early elections to restore stability.
The timing could hardly be worse. Japan faces rising security threats from China and North Korea, while Washington expects more military spending. At home, households remain squeezed by inflation and weary of political instability.
Ishiba’s Legacy
Shigeru Ishiba lasted barely a year. He will not be remembered for his promises of reform, but for the deal that undid him.
He wanted a legacy of strong diplomacy. Instead, he leaves with an image of a leader who bowed to Washington and lost the confidence of his own people.
For many Japanese, the story of Ishiba’s fall is simple: their prime minister signed away too much, and then paid the price.
