Overview

• Ishiba announced on Sept. 7 that he is stepping down as LDP president and asked officials to start an emergency leadership election, cancelling a Monday vote that had become a virtual no‑confidence test.
• His exit follows successive defeats that cost the LDP‑Komeito coalition its majorities in both Diet chambers, with Secretary‑General Hiroshi Moriyama earlier signaling his own resignation.
• Ishiba said the timing followed a milestone in U.S. tariff talks, after a deal that lowers duties on Japanese autos to around 15% and accompanies a Japanese investment pledge reported at $550 billion.
• Potential successors discussed by party and media include Agriculture Minister Shinjiro Koizumi, Sanae Takaichi, Chief Cabinet Secretary Yoshimasa Hayashi, Takayuki Kobayashi and Finance Minister Katsunobu Kato, with a party vote expected in October.
• Markets have shown strain from the political uncertainty, and the next leader faces a minority in both houses that will require opposition cooperation to pass legislation or risk policy gridlock.