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Sanae Takaichi Wins LDP Leadership, Putting Japan on Track for First Woman Prime Minister

She now faces a minority Diet, coalition uncertainty, plus U.S. tariff pressures.

Sanae Takaichi, the newly elected leader of Japan's ruling Liberal Democratic Party (LDP), poses in the party leader's office after the LDP leadership election in Tokyo, Japan, October 4, 2025. Conservative Sanae Takaichi hailed a "new era" on October 4 after winning the leadership of Japan's ruling party, putting her on course to become the country's first woman prime minister. Yuichi Yamazaki/Pool via REUTERS/File Photo
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Sanae Takaichi, the newly elected leader of Japan's ruling party, the Liberal Democratic Party (LDP), holds a press conference after the LDP presidential election in Tokyo, Japan, October 4, 2025. Conservative Sanae Takaichi hailed a "new era" on October 4 after winning the leadership of Japan's ruling party, putting her on course to become the country's first woman prime minister. Yuichi Yamazaki/Pool via REUTERS
The yen tumbled against the dollar after Japan's LDP picked Sanae Takaichi to become the next prime minister.

Overview

  • Takaichi defeated Shinjiro Koizumi in a runoff to lead the LDP, though outlets reported differing vote tallies for the final round.
  • An extraordinary Diet session in mid-October is expected to vote on the premiership, requiring her to secure backing beyond the LDP’s minority.
  • She backs Abenomics-style fiscal expansion, tighter immigration rules, and higher defense spending, while opposing same-sex marriage and female imperial succession.
  • Komeito’s unease with a hard-right leader threatens the durability of the ruling partnership and complicates vote‑counting for legislation.
  • A recently clarified U.S. tariff-and-investment arrangement—lower auto duties tied to a reported $550 billion commitment—poses immediate economic pressure that she has indicated she could seek to revisit.