29 July 2025

The Trump Effect In Japan – Analysis

Ambassador Gurjit Singh

The ruling coalition in Japan, comprising the Liberal Democratic Party (LDP) and its junior partner, Komeito, suffered a political setback in the Upper House elections on July 20, reducing it to a minority status.[1] This follows its earlier disappointing performance in the October 2024 Lower House elections,[2] which had already cost it a majority.[3] As it stands, the coalition now finds itself in the minority, in both chambers of the National Diet, a rare and politically precarious position that may foreshadow deeper shifts in Japan’s political landscape.

Of the 125 Upper House seats contested, 124 were regular seats, while one was a by-election. The electoral system gives voters two votes: one for a candidate in their local constituency and another for a political party through proportional representation. Fifty seats were filled via proportional representation, with the remaining 75 chosen by a direct constituency vote.[4]

Prior to the election, the LDP-Komeito coalition held 75 uncontested seats. Their target was modest: secure at least 50 seats out of the 125 up for grabs, enough to maintain a slim majority. However, the results fell short. The coalition won only 47 seats, three fewer than needed, for a majority. The LDP, under Prime Minister Shigeru Ishiba, lost 13 seats, while Komeito dropped six. Meanwhile, 

the opposition bloc made substantial gains, securing a total of 78 seats. Much of the disillusionment with the ruling coalition centres around economic frustrations. Inflation, long dormant in Japan, has resurfaced, now hovering above 3%. The cost of basic necessities such as rice has doubled in the past year, and a consumption tax of 10% continues to weigh heavily on consumers. Wages, by contrast, have remained stagnant, leaving many Japanese citizens struggling to maintain their standard of living.

This economic squeeze has particularly affected young voters and families, prompting questions about the government’s ability to manage the economy. Amidst rising living costs and growing inequality, the LDP’s campaign promises appeared out of touch with the daily realities of many voters.

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