[A photo of the Tokyo skyline. Photo credit to Unsplash] 

On July 20th, 2025, Japan’s political scene was dramatically changed as Prime Minister Shigeru Ishiba’s coalition lost its majority in the upper house of parliament.

This shift in power marks one of the greatest setbacks the Japan’s Liberal Democratic Party (LDP) has experienced in decades.

Without a majority in the upper house, Ishiba’s coalition will no longer be able to pass legislation without pushback, effectively ending their previously absolute power over parliament.

The electoral results reflect voter dissatisfaction with the government’s inability to address the growing economic challenges facing the country.

In the 248-seat House of Councillors, the LDP and their coalition partner party Komeito, had hoped to secure at least 125 seats to maintain their majority.

With 75 seats going uncontested by other parties, Ishiba’s coalition  needed to win just 50 of the remaining 173 contested seats to retain their majority.

However, they managed to secure only 47 seats, ultimately losing their parliamentary control. 

More troubling for the coalition, Ishiba’s government also lost their majority in the House of Representatives in October 2024, leaving the LDP and Komeito parties in the rare situation of being the minority in both houses of Japan’s bicameral legislature.

Japan is currently facing national economic stagnation, along with multiple spikes of inflation, and a higher cost of living.

The price of essential goods, notably rice, has more than doubled over the past year, making living conditions increasingly difficult for many families and fueling widespread criticism of the LDP and their economic policies.

Voters' primary concerns centered on the fact that prices for necessities such as housing and food have risen disproportionately faster than average wages. 

Over the past year, the average housing prices in Japan’s capital city, Tokyo, have increased by over 10%, while the average wage for corporate workers has increased only 5.25%.

These increasingly demanding living conditions have led the public to criticize the government’s inability to address the difficulties facing ordinary citizens.

A notable development during the election was the surge in popularity of the Sanseito party, a right-wing organization with an agenda focused on promoting nationalism, anti-immigration, and opposition to globalism.

The Sanseito party has claimed 14 seats in parliament, enough to majorly affect decisions made by Ishiba’s coalition.

The sudden rise of Sanseito illustrates the Japanese citizens’ frustrations with what they perceive as corrupt elites who fail to understand ordinary people’s lives, prompting them to vote for candidates who claim to speak for working-class citizens. 

Meanwhile, opposition parties such as the Constitutional Democratic Party (CDP), and the Democratic Party For the People (DPFP), collectively secured 39 seats by focusing heavily on economic relief measures, including tax cuts and increased social services. 

Despite the loss, Prime Minister Ishiba remains determined to keep his position in office.

Following the vote, Ishiba announced his intention to continue ongoing negotiations with the U.S. on a trade agreement that would limit tariffs on Japanese imports to 15% from the current 25-27.5% range.

However, given his lack of parliamentary support, ratification of any agreement is still uncertain, further damaging his public image.

Ishiba’s political instability within the government has caused immediate reactions in  financial markets, with the yen’s value falling slightly.

Investors warn that continued political gridlock could cause Japanese markets to plummet, further undermining Ishiba’s reputation as Prime Minister.

As his control over Japanese politics continues to weaken, Ishiba has come under growing criticism from within his own party, as many LDP members have begun calling for alternative leadership.

If the coalition fails to stabilize Japan’s financial and economic situation soon, a snap election for the lower house could be held, potentially stripping the LDP of its remaining power and completely transforming the country’s political landscape.