Japan Faces Trade Uncertainty After Ruling Party’s Election Defeat

Japan is facing trade and political uncertainty after a historic defeat for the prime minister’s ruling party. Shigeru Ishiba is trying to buy time for his premiership following this past weekend’s election, which left the ruling bloc three seats short of a majority in the upper house.

Despite being in a weaker position to stave off opposition demands or secure a last-minute trade deal with the US, Ishiba has vowed to stay on with a minority in both houses. Many of the key opposition parties ran on a platform to cut the sales tax, and Ishiba may have to make concessions to push any of his policies through.