Japanese PM to stay on to tackle inflation, tariffs despite election loss

The loss is another blow to Ishiba's coalition, making it a minority in both houses following its October defeat in the lower house election

Japanese Prime Minister Shigeru Ishiba said Monday he will stay in office to tackle challenges such as rising prices and high US tariffs after a weekend election defeat left his coalition with a minority in both parliamentary chambers.

Ishiba's ruling Liberal Democratic Party and its junior coalition partner Komeito were short three seats to maintain a majority in the 248-seat upper house in Sunday's vote. The coalition is now a minority in both houses of the Diet, or parliament, though the LDP is still the leading party.

Ishiba said he takes the result seriously but that his priority is to avoid creating a political vacuum and to tackle impending challenges, including the Aug 1 deadline for a tariff deal with the US.

While I painfully feel my serious responsibility over the election results, I believe I must also fulfil my responsibility I bear for the country and the people so as not to cause politics to stall or go adrift, Ishiba said. Challenges such as global situation and natural disaster won't wait for a better political situation."  The prime minister said he hopes to reach a mutually beneficial deal and meet with US President Donald Trump.

Sunday's vote comes after Ishiba's coalition lost a majority in the October lower house election, stung by past corruption scandals, and his unpopular government has since been forced into making concessions to the opposition to get legislation through parliament. It has been unable to quickly deliver effective measures to mitigate rising prices, including Japan's traditional staple of rice, and dwindling wages.

Trump has added to the pressure, complaining about a lack of progress in trade negotiations and the lack of sales of US autos and American-grown rice to Japan despite a shortfall in domestic stocks of the grain. A 25% tariff due to take effect Aug 1 has been another blow for Ishiba.