Japan’s Very Own Thatcher 

Continuing our Referendum Rundown, Japan’s political situation has become ever more precarious for the long standing LDP. After a drawn out election cycle, Japan has elected its first ever female leader: Sanae Takaichi. She has had a long career as a politician and served in the Abe Administration for years. Many are already calling her Japan’s Iron Woman. In fact, Takaichi has publicly mentioned her adoration for the late British Prime Minister, having drawn inspiration for her signature blue suits from Thatcher’s iconic blue suits of the 1980’s.. 

Drawing from Thatcher’s example, Takaichi looks to be a leader with a tough image and keenly focused on strengthening Japan’s defensive capability.  However, Takaichi has not been dealt an easy hand. The LDP is still reeling from the Slush Fund scandal, while still sitting in a precarious coalition, all while the nation is facing skyrocketing prices. It is still yet to be seen if she will be Japan’s Thatcher or will she be the next Liz Truss. 

Takaichi’s Homefront

One of the most salient issues facing Japan, and consequently Takaichi’s administration, has been the price of rice. The new Minister for Agriculture, Forestry, and Fisheries, Norikazu Suzuki, had a difficult road ahead. During his first day in office, he was questioned about the price of rice and its effect on Japanese farmers. Suzuki did comment that rice prices are currently too high, as he believes that 5kg of rice should be roughly between USD$20 and USD$30. But Suzuki has to balance two sides of this equation. As falling prices could threaten the livelihood of farmers. Though, in the end, the new farming minister has insisted that the price is set by the global market and the Japanese government is not involved in setting prices. While the government is doing its best to respect the free market, prices are continuing to rise, and the people are looking to their government for relief.

Takaichi is taking immediate action to try and combat inflation in Japan. In an effort to control rising prices, Prime Minister Takaichi immediately announced several tax reforms aimed at relieving prices for everyday Japanese citizens. She plans on abolishing the provisional gas tax rate, as well as lift the nontaxable income level by more than the equivalent of USD$3,000. .  It is hard to tell if these incremental changes will truly result in slowing the rate at which prices are rising because the package is made of many small steps. But it does show the Japanese public that Takaichi is at least willing to address the issue, and she may have bought herself some breathing room in the public eye. While this focus on her people’s cost of living is commendable in many ways, Takaichi must also be aware that she and her party are on thin ice with the Japanese public. The LDP’s image is still stained by the slush fund scandal that rocked the ruling party in 2023.

While the breathing room from addressing inflation will be a welcome reprieve for the LDP, there are still major questions from Takaichi’s opposition. Many have been quick to point out that, although she may be the first female leader in Japanese history, she is far from representing the feminists in Japan. She has been a supporter of traditional gender roles and has been a staunch supporter of women taking their husband’s surname at the time of marriage, even as she continues to use her maiden name professionally. (Legally, her surname is Yamamoto.) 

Japan’s Allies and Partners

Turning towards the international front, Takaichi is truly being tested by fire. In her first days as Prime Minister, North Korea launched a flurry of missiles into the Sea of Japan that included a supposed new hypersonic capability. The North Korean threat shares many dynamics with the other issues facing Japan. Takaichi can do little about the situation on the Korean peninsula, and it is the US who is in the driver’s seat. Trump made it a point to meet with the families of the Japanese citizens who were kidnapped by North Korea. He had told the victims’ families that this issue had been on his mind ever since his first term and that he would do everything in his power to get the victims returned home. Trump’s visit to Japan did showcase some cooperation between Tokyo and Seoul. There has been speculation that Takaichi’s hawkish positions would start to embitter the relationship between South Korea and Japan, but it would seem that the two nationals have been able to maintain a united front thus far. This is similar to the larger regional dynamics: It has been Trump and the US who have set the tone for Western policy in Asia with South Korea and Japan tightly in tow.

 It is not all bad news for Japan’s new Prime Minister. When it comes to Trump, the late Shinzo Abe was someone who Donald Trump considered a close ally and of a similar political ilk, and as stated before, Takaichi was a long-serving member in the Abe cabinet. She was able to successfully leverage the legacy of the late Prime Minister Abe in her first meeting with Trump. The US president was in incredibly high spirits during his time in Japan, where he and Takaichi made three formal appearances together. The two seemed to get along extremely well. Trump has had a positive view of Takaichi prior to his trip as he was a big fan of her push to expand Japan’s defensive spending. Defense spending has continued to be a major area of concern for the Trump Administration, and Japan now has leadership that is in line with the Trump Administration. 

Takaichi and Trump’s positive relationship stems from more than just alignment on policy. Cultivating Trump’s favor through elaborate gifts is a deliberate strategy of Takaichi’s Administration, as shown by the preparations made for Trump’s visit. Trump was given a golf bag from Hideki Matsuyama and a putter used by the late Shinzo Abe, truly showing how well prepared Takaichi and her staff were for this state visit. Both Tokyo and Seoul seemed to have shared their playbooks with each other regarding Trump and his tour through Asia. Both East Asian states gave Trump very extravagant gifts that played to Trump’s personal tastes. So far, it would seem that Takaichi’s hawkish stances have not disrupted cooperation between South Korea and Japan. 

Japan’s Future

Takaichi certainly has her hands full. Regional dynamics are rapidly changing, and Japan must do its best to keep up. Takaichi’s focus on increasing defense spending and strengthening Japan’s overall defensive capabilities look to be the stabilizing forces for the LDP and their new coalition. However, greater government spending risks exacerbating Japan’s inflation dilemma, which is a major concern for the economy, and it is at the top of people’s minds. Takaichi will always be known for being the first female leader of Japan, but it is up to her if that will be her entire legacy.