Panama’s President Jose Raul Murino (not pictured) gave a speech at a joint press conference after a meeting at the Tokyo Prime Minister’s Office on September 5, 2025, when Prime Minister Isbaiba listened.
Eugene Hoshiko | AFP | Getty Images
The Japanese Prime Minister announced on Sunday that he would resign as the world’s fourth largest economy leader amid growing political discrepancies within his party.
“I have made a difficult decision to resign,” Isba said in a comment translated by Japanese public broadcaster NHK. He added that it is his “strong wish” for his liberal Democrats (LDP) members to overcome the “difficult disparities” within the party.
Isba had been thinking about his position as prime minister since last year’s election, showing that it was a matter of finding the right timing.
Isba described US tariff measures as a “national crisis.” He added that he believes he has reached a “significant milestone” after receiving a report from Japanese tariff negotiator Ryosei Akazawa on Saturday.
“I have consistently stated that I am not going to stick to this position and that I am not going to make decisions at the right time after I have achieved what I am supposed to do.
The Prime Minister called on the LDP to vote for emergency leaders. Isba will continue his duties until a new successor is discovered, he told reporters.
The world’s fourth largest economy is plagued by political uncertainty as the LDP lost its parliamentary majority in the SNAP election late last year. The election marked the first time since 2009 that the LDP has lost a majority. Pressure came when Japan’s ruling coalition lost control of the Senate in July.
Japan had struggled to reach a trade agreement with the US and protect its large automotive sector from its high duties. US President Donald Trump signed an executive order on Thursday to implement a trade agreement with Japan, imposing a 15% baseline tariff on most Japanese goods, including cars.
The deal was agreed after months of negotiations, and Washington and Tokyo continued to overturn details for weeks when they were signed. On Sunday, negotiator Akazawa said the agreement was “unresolved” as the US has not yet issued its expected executive order on its drug and semiconductor duties, Reuters reported.
Pressure at home
Earlier this week, Japan’s ruling Liberal Democrats released their long-awaited report on why they lost their seats in the July Senate elections.
The report defeated the lack of appeal for party measures aimed at keeping inflation, previous political scandals and weak mobilization of young voters in mind.
Local media reports suggested that many key members of the LDP had shown intentions to resign to the prime minister, but Isba said he intends to stay on calls within his party to choose another leader.
– Anniek Bao of CNBC contributed to this report.
