Sanae Takaichi, the former Minister for Economic Security and Minister for Internal Affairs and Communications, has won the leadership election of Japan’s ruling Liberal Democratic Party (LDP). She is poised to become the first female prime minister in the world’s fourth-largest economy when the Diet, Japan’s parliament, convenes on October 20. As the LDP has lost two consecutive national elections, the public is closely watching whether she can rebuild the party’s momentum and address both domestic and international challenges.
“Rather than saying I’m happy now, I truly feel the challenges that lie ahead, and there are mountains of work we must tackle together,” said Takaichi in her speech after winning the runoff election against Agricultural Minister Shinjiro Koizumi on October 4. She added, “We can’t rebuild the LDP unless we strive together by gathering the power of all generations. I will abandon the notion of work-life balance. I will work, work, work, work.”
Takaichi’s victory signals major changes within Japan’s ruling party and its political landscape. It marks a clear break from the direction taken by former prime ministers Fumio Kishida (2021–2024) and Shigeru Ishiba (2024–2025). Both sought centrist and moderate support by showing openness to LGBTQ+ rights and the possibility of allowing couples to use different surnames after marriage. In financial policy, they maintained strict austerity measures, citing Japan’s immense sovereign debt, which equals 234% of its Gross Domestic Product. Their cautious fiscal approach contributed to the rise of the pro-tax-cut Democratic Party for the People (DPP) and other right-leaning parties such as the Conservative Party of Japan (CPJ) and the anti-globalist Sanseito Party, which gained significant support in the July House of Councilors election.
Known for her strong conservative ideology and willingness to adopt expansive fiscal policies to revitalize Japan’s stagnant economy, Takaichi has raised expectations among many LDP supporters and lawmakers hoping for renewed energy under her leadership. However, she is likely to maintain her predecessors’ defense and national security strategies, including raising defense spending to at least 2% of GDP and strengthening alliances with the United States and other like-minded nations to counter growing security threats from China. Takaichi is known for her tough stance on Beijing and vocal support for Taipei.
Takaichi has a distinctive personal and political background. Since winning her first seat in the House of Representatives in 1993, she has held several key posts, including Minister of Internal Affairs from 2014 to 2017 and again from 2019 to 2020, and Minister of State for Economic Security from 2022 to 2024. In the latter role, she played an essential part in securing the supply of critical materials and introducing Japan’s “security clearance” system, which restricts access to sensitive technologies that could be used for both civilian and military purposes. Throughout her career, Takaichi has championed conservative goals such as constitutional revision, expressed skepticism toward same-sex marriage, and opposed allowing married couples to retain separate surnames.
Her political journey has not been without controversy. In 2016, she faced strong backlash after suggesting that media outlets could lose their broadcasting licenses if they violated political neutrality. During the recent leadership race, she sparked another debate by accusing some foreign tourists in her home prefecture of Nara of kicking the local deer, although Japanese media later reported no evidence of such incidents.
Japan’s political environment is now undergoing profound change. Forming a stable government will be challenging, as the LDP no longer holds a majority in either chamber of the Diet. On October 10, Komeito Party leader Tetsuo Saito announced the party’s withdrawal from its long-standing coalition with the LDP, citing disagreements over political funding, though many speculate that the real reason lies in Takaichi’s hawkish policies.
Economically, Takaichi’s push for aggressive fiscal spending could bring mixed results. The benchmark Nikkei 225 has surged to record highs, but the Japanese yen has weakened sharply, raising fears of accelerating inflation and worsening fiscal strain. Diplomatically, Takaichi will face her first major test when she meets U.S. President Donald J. Trump on October 28. She is expected to stress the importance of continued U.S. engagement in the Indo-Pacific region and defend Japan’s interests amid trade tensions. The 15% reciprocal tariff on Japanese goods that took effect in September remains a pressing issue for Tokyo.
Sanae Takaichi’s rise to power marks a defining moment for Japan. Her leadership will be tested by economic headwinds, strained alliances, and a divided parliament. Even before officially taking office, the challenges ahead are steep, and the expectations even higher.
