More uncertainty hits the world's fourth-largest economy as Japan's PM to step down after less than a year in power

"Ishiba told a news conference that the long-dominant Liberal Democratic Party (LDP) should prepare for a leadership election, and he would stay in position until then. "Now that negotiations on US tariff measures have reached a conclusion, I believe this is the appropriate moment," he said. "I have decided to step aside and make way for the next generation," said the 68-year-old."

"US President Donald Trump signed an order on Thursday to lower tariffs on Japanese autos, with Washington finally moving to implement a trade pact negotiated with Tokyo in July. However, although Japanese autos will now face a 15 percent tariff instead of the current 27.5 percent, the levy will still cause significant pain in the crucial industry. Seen as a safe pair of hands, Ishiba took the helm of the LDP in September 2024 and became the 10th man in the party to serve as prime minister"

Shigeru Ishiba said he will step down after less than a year in office following the loss of his majority in both houses of parliament. He instructed the Liberal Democratic Party to prepare for a leadership election and will remain in office until a successor is chosen. US measures have lowered tariffs on Japanese autos to 15 percent from 27.5 percent under a negotiated trade pact, but the levy still threatens the auto sector. The LDP suffered poor election results, including its worst lower house showing in 15 years, prompting calls for his resignation.

Read at Fortune