Sanae Takaichi: Japan's First Female PM Faces Coalition Crisis and Economic Challenges

Sanae Takaichi, Japan's former Economic Security Minister, must immediately address ways to maintain power for the Liberal Democratic Party (LDP) following her election as party leader.

The 64-year-old hard-line conservative stands poised to make history as Japan's first female prime minister. Her immediate challenges include rebuilding public confidence by implementing effective measures against inflation and navigating diplomatic relations, particularly with the incoming Trump administration.

A devoted follower of former Prime Minister Shinzo Abe's conservative vision, Takaichi risks losing the LDP's longtime coalition partner, Komeito. The Buddhist-backed centrist party has expressed significant concerns about her ultra-conservative positions, including her revisionist stance on Japan's wartime history and regular visits to the controversial Yasukuni Shrine—actions that could potentially strain relations with China and South Korea.

Takaichi faces a critical dilemma: maintain her ideological positions and potentially lose a crucial coalition partner, or moderate her stance and possibly alienate supporters who value her hawkish politics.

The Japanese parliament is expected to convene in mid-October to formally elect a new prime minister. Despite recent election setbacks leaving the LDP without a majority in either parliamentary house, Takaichi will likely become Japan's leader as the LDP remains the dominant party in the lower house, which determines national leadership, and opposition parties remain fragmented.

Addressing rising prices stands as a critical priority to restore support for the struggling LDP. Additionally, Takaichi faces a significant diplomatic test with an anticipated summit with U.S. President-elect Donald Trump later this month during his planned Asia trip.

Trump congratulated Takaichi on social media platform X, referring to her as the "first female Prime Minister" and praising her as "a highly respected person of great wisdom and strength." Takaichi responded with gratitude, expressing her hope to "work together with President Trump to make our Japan-U.S. alliance even stronger & more prosperous, and to advance a Free and Open Indo-Pacific."

During her first press conference as LDP leader, Takaichi emphasized her commitment to strengthening the Japan-U.S. alliance as fundamental to Japan's diplomacy and security, while also expanding trilateral partnerships with South Korea, Australia, and the Philippines.

She has pledged to honor existing tariffs and investment agreements established between current Prime Minister Shigeru Ishiba's government and the Trump administration.

Securing cooperation from opposition parties represents one of Takaichi's most urgent challenges. The LDP hopes to expand its current coalition with Komeito to include at least one key opposition party. However, rather than gaining a new partner, Takaichi risks losing Komeito, which has expressed "big worry and concern" about her positions, particularly regarding her Yasukuni Shrine visits and proposed stricter measures targeting Japan's foreign population.

In her first act as party president, Takaichi appointed allies of former Prime Minister Taro Aso, a powerful conservative kingmaker who supported her candidacy, to top party positions. Aso has already begun outreach efforts, meeting with a senior official from the opposition Democratic Party for the People to discuss potential cooperation.

Political analysts suggest Takaichi may reward those who supported her in the runoff with key appointments. Toshimitsu Motegi, who has previously served in prominent ministerial roles including foreign and trade ministers, is reportedly being considered for the foreign minister position.

Controversy surrounds Takaichi's apparent intention to appoint former members of Abe's faction implicated in financial scandals to senior positions, despite public criticism over the party's failure to implement meaningful reforms following electoral defeats.

Yoshihiko Noda, who leads the largest opposition party, the Constitutional Democratic Party of Japan, has criticized this approach as "totally unthinkable."