Japan PM Ishiba to announce resignation next month: Report
Ishiba is facing growing opposition from within his Liberal Democratic Party for his vow to stay in power despite the ruling coalition's bruising defeat in Sunday's upper house election.
According to the Yomiuri daily, Ishiba told his close associates on Tuesday evening that he would explain how he would take responsibility for the election loss once a solution was reached on trade negotiations.
In a post on Truth Social posted on Wednesday Asian hours, US President Donald Trump said he had just completed a "massive" deal with Japan that included US$550 billion in investments into the United States.
Speaking after Trump's post, Ishiba said he was ready to meet or speak over the phone with Trump after being briefed on the details by Japan's top trade negotiator Ryosei Akazawa, who has been in Washington for trade talks.
"I can't say until I scrutinise the outcome of the agreement," Ishiba told reporters when asked how the deal with Washington could affect his decision on whether to step down.
In explaining his decision to stay on, Ishiba has stressed the need to avoid creating a political vacuum as Japan faced challenges including difficult trade negotiations with the US that would have a huge impact on the export-reliant economy.
"I will stay in office and do everything in my power to chart a path toward resolving these challenges," Ishiba said in a news conference on Monday, adding that he intended to speak directly with Trump as soon as possible and deliver tangible results.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
5 minutes ago
- Business Times
US-China relations: Between confrontation and transaction
THE return of Donald Trump to the White House in January has ushered in a new chapter of Sino-American relations marked by aggressive economic policies, strategic unpredictability and a pattern of escalation followed by tactical negotiations. Six months into his second presidency, Trump's approach to China has proved both more confrontational and more transactional than many observers anticipated. And there are now signs that his administration is starting to reassess its moves. Trump signalled a hard line on China with hawkish Cabinet picks, including Secretary of State Marco Rubio and National Security Advisor Michael Waltz. He also wasted little time in implementing his campaign promises on China trade policy. Within weeks of inauguration, the administration launched what many economists dub the most aggressive trade war in recent history. On Feb 1, Trump signed an executive order imposing an additional 10 per cent tariff on imports from China. Starting in April, Trump imposed a minimum 10 per cent tariff on nearly everything the US imports, although goods from China faced a higher tariff of 34 per cent. The administration's broader China strategy plans to fundamentally restructure economic ties between the two nations. Trump pledged to revoke China's preferential trade status and had threatened at least 60 per cent tariffs on Chinese imports during his campaign, signalling a departure from decades of economic engagement and the start of a process of decoupling. Beyond trade, the Trump administration is also expanding restrictions on Chinese ownership of American assets. The president has said he will pressure Chinese companies to sell holdings that threaten national security interests. This encompasses farm land, natural resources, technology companies and ports. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up These moves represent a broader shift towards viewing the trade relationship through national security lenses, promoted by the China hawks in office. Economic competition is being framed as a matter of strategic rivalry rather than mere trade disputes. Despite the aggressive opening moves, Trump's second term has also demonstrated his willingness to pull back from maximum pressure when it serves his interests. In mid-May, Washington reached an agreement with Beijing to lower tariffs dramatically and open some markets that both sides had closed off as tensions rose. Tariffs on Chinese imports fell to 35 per cent from 145 per cent – a historic level reached in April following retaliatory hikes. That dramatic reduction demonstrated Trump's transactional approach to international relations. The 90-day suspension of the heaviest tariffs has created space for ongoing negotiations, with both sides apparently recognising the economic costs of sustained pressure. US companies have faced particular challenges adapting to the volatile policy environment. The clash has also seen China retaliating through restrictions on critical minerals and magnets needed by US factories. Some sectors have received temporary relief, with the administration exempting certain technology products from the harshest tariffs, but many businesses report difficulties with long-term planning amid policy uncertainty. Trump's confrontational approach extended beyond China to traditional allies, potentially reshaping regional dynamics in Asia. By pressuring Canadian, Mexican and European partners, his administration has created opportunities for China to strengthen relations with countries seeking alternatives to US partnerships. The unpredictability of Trump's approach has forced some regional powers to recalculate their strategic positions, with some hedging their bets between the two superpowers rather than aligning clearly with the US. The rising costs of a growing confrontation with China has led to the reassessment of these policies in Washington. Most intriguingly, the Trump administration reversed its position on technology controls, notably allowing Nvidia to sell lower-level artificial intelligence chips, the H20, to China this month after banning such sales in April. Some suggest that this dramatic about-turn from the administration's initial hardline stance may reflect the eroding power of the China hawks in the administration, including personnel changes. Alex Wong, a known China hawk and former deputy national security advisor, has been reassigned to another role, and the State Department has shuttered the team involved in South China Sea security. These changes appear tied to Trump's broader diplomatic strategy. Some in Washington are speculating that he may be angling for a Chinese trip as he courts a more assertive China. But it is doubtful that the administration is planning to reset the relationship with China through direct engagement rather than continued confrontation. In a way, several patterns have emerged in Sino-American relationships under Trump. The administration appears committed to using economic pressure as its primary tool for reshaping the relationship, but remains willing to negotiate when faced with economic or political costs at home. The relationship is now defined by cycles of escalation followed by tactical compromises, reflecting Trump's preference for dramatic gestures and dealmaking. Still, neither side appears willing to accept a return to the pre-2016 status, suggesting that heightened tensions and economic competition will remain defining features of US-China relations.
Business Times
5 minutes ago
- Business Times
Who buys the F-150s, and more Japan deal mysteries
The long-awaited trade deal between the US and Japan has investors celebrating after months of uncertainty. But as the song goes, nagging questions always remain. Who is going to buy the 'cars, SUVs (sport utility vehicles) and trucks' that President Donald Trump has promised to sell? Who is going to purchase the 100 Boeing jets? And what possible structure could the US$550 billion fund, allegedly financed by Tokyo with 90 per cent of profits going to the US, actually take? Answers are sorely needed, not just because of an already growing comprehension gap between the countries over what was actually agreed, but to inform South Korea and other close US allies who are trying to wrap up similar deals before Aug 1. Let us start with autos, long the main source of Trump's dissatisfaction with Tokyo as well as the largest single cause of the trade deficit. The White House fact sheet (if indeed it can so be called) declared that 'longstanding restrictions on US cars and trucks will be lifted, granting US automakers access to the Japanese consumer market'. Of course, US carmakers have enjoyed unlimited access to the Japanese market for decades. As I noted in April, the problem is that US cars just are not good enough for the local consumer – and Detroit largely is not interested in trying to muscle its way into a hyper-competitive market dominated by domestic players. Tokyo can try making it a little easier to import US vehicles, such as simplifying inspection procedures, but it cannot rebuild cities to fit the bloated models US automakers favour. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Around 84 per cent of streets in Japan are municipal roads with an average width of just 3.7 m. Even if Tokyo gave everyone a Ford F-150 pickup, its 2.4 m width would prevent two from passing on narrow streets. Hence, cute minivans and kei cars – Japan's smallest expressway-legal 'light vehicles' – dominate while, as my colleague Liam Denning said this week, 'US automakers do not, in general, make an adorable little anything.' In any case, Japan's auto market has been shrinking for years, with new cars sold down about 20 per cent from a 1990s peak. Automakers constantly fret that young people are losing interest in learning to drive, while the growing numbers of elderly citizens are encouraged to return their licences. But more significant is what form the US$550 billion investment fund will take. Treasury Secretary Scott Bessent said the 'innovative financing mechanism' was key to Tokyo getting a deal at all. But neither side seems to agree on what it looks like. The idea first surfaced in May when the Financial Times reported that SoftBank founder Masayoshi Son had suggested a joint sovereign wealth fund. The White House calls it an 'investment vehicle' that will 'rebuild and expand core American industries'. Prime Minister Shigeru Ishiba, however, refers to a combination of equity, loans and guarantees that will be led by the Japan Bank for International Cooperation and guarantees by Nippon Export and Investment Insurance. That sounds more like overseas development aid than a wealth fund – though few could argue American infrastructure might actually benefit from that. Trump now promises Japan will 'give us 90 per cent of US$550 billion'. Tokyo is saying that applies to projects where 90 per cent of investment is from the US – in other words, profits are proportional. Does the figure include funding already pledged, such as SoftBank's promised US$100 billion? Who knows? Indeed, a leaked photo from the talks shows what looks like a proposal from Japan for a US$400 billion fund, crossed out with US$500 billion handwritten on top. That proposal also suggested a 50 per cent profit share. Is this just repackaged existing spending into a simple PowerPoint slide? After all, Japan already invested US$783 billion in the US in 2023, and Ishiba pledged in January to boost that to US$1 trillion in the future. The problem is that at some stage, this needs to be worked into actual policies. And this is where Ishiba's rush to agreement might come back to bite, especially if he is no longer in the job when the talks get down to details – something that, despite his denials , still seems all but certain after the drubbing his Liberal Democratic Party took in recent upper house elections. There are plenty of parts of the deal that do make sense. The 100 Boeings can find a home at the country's airlines, though Japan has admitted the number includes at least some already-planned purchases. With Japan as the world's largest buyer of liquefied natural gas, Tokyo's participation in the Alaska project always seemed logical. Even if the two sides do not seem to agree on what they decided on defence, Japan needs to spend more and the US is the logical seller. Above all, it is encouraging to see the White House, after all these months of tense relations, again describe its ally as the 'cornerstone of peace in the Indo-Pacific'. But with all these questions – and Washington continuing to hold the threat over Japan's head with a quarterly evaluation of its compliance with the deal – the market's sigh of relief might still be premature. BLOOMBERG
CNA
5 minutes ago
- CNA
Philippine flooding centre stage at Marcos state of nation speech
MANILA: Philippine President Ferdinand Marcos blasted "useless and crumbling" flood control projects in a state of the nation address on Monday (Jul 28) that focused on domestic issues after a months-long feud with his vice president. Addressing a joint session of Congress after days of rain that left at least 31 dead, Marcos repeated his recent warning that the nation faced a climate change-driven "new normal", while pledging to investigate publicly funded projects that had failed. "Let's not pretend, the people know that these projects can breed corruption. Kickbacks ... for the boys," he said, citing houses that were "swept away" by the floods. "Someone has to pay for the grave damage and corruption," he said, adding he would demand a full list of failed flood control projects and make it public. After months dominated by a feud with his vice president that left many voters disillusioned, Marcos's speech leaned heavily into bread-and-butter concerns. "The people feel a sense of defeat and dismay at the government, especially when it concerns basic services," he said, referencing disappointing mid-term election results in May. "The lesson for us is very simple. We need to do better. We need to work faster." Marcos spent much of his 70-minute speech unveiling promises for the second half of his six-year term – from 40,000 more classrooms to new power plants and free dialysis treatments – though he offered little by way of detail. Notably absent was any explicit mention of the rising tensions with China over disputed areas of the South China Sea that figured heavily into last year's address. After 12 months marked by violent clashes at sea and an increasingly close military relationship with the United States, Marcos said only that the country faced "new threats" to its sovereignty while adding "more allies who can help us in our time of need". NO SHOWS Numerous high-profile allies of Vice President Sara Duterte, whose would-be impeachment trial was scrapped by the Supreme Court on Friday, skipped Monday's address, including the president's senator sister Imee Marcos. The feud between the Marcos and Duterte political dynasties loomed large over the May mid-terms that saw the vice president's camp outperform expectations. The duo swept to power in 2022 in an alliance that began crumbling almost immediately. Their feud exploded into open warfare this year with her impeachment and the subsequent arrest and transfer of her father, ex-president Rodrigo Duterte, to face charges at the International Criminal Court in The Hague over his deadly drug war. The timelines of those two events coincided with a sharp dip in the president's polling numbers. Marcos had publicly stated that he was against the impeachment while consistently maintaining he was powerless to intervene. "NEW NORMAL" Last week, the Philippine president for the first time blamed climate change for storms which are hitting the country harder and more frequently, saying Filipinos would need to learn how to adapt. "This is not an extraordinary situation anymore ... This will be our lives no matter what we do," he told a cabinet briefing, adding the country should plan for the long-term in addressing natural disasters. "This is the way it's going to be as far as we know for... many decades to come, so let's just prepare," he said. Michael Henry Yusingco, a senior research fellow at the Ateneo de Manila University School of Government, on Monday praised Marcos's pledge to tackle corruption around flood control projects but warned that follow-through would be everything.
