Japan’s political landscape has shifted dramatically with the ascent of Sanae Takaichi, the country’s first female prime minister, who delivered her inaugural policy speech before the National Diet on October 24, 2025. In a moment marked by both symbolism and substance, Takaichi laid out an ambitious vision for Japan’s future—one that blends security assertiveness, economic revitalization, and diplomatic recalibration, all against the backdrop of a newly configured coalition government and a fractious parliament.
In her speech, Takaichi struck a diplomatic chord by calling South Korea “an important neighbor to Japan,” pledging to pursue stronger bilateral ties through direct dialogue between the two countries’ leaders. This statement, reported by Korea JoongAng Daily, comes at a time when Tokyo and Seoul have been navigating a maze of historical disputes and regional security anxieties. Takaichi’s overture signals a willingness to turn the page, at least rhetorically, on years of frosty relations.
But Takaichi’s address was more than just neighborly niceties. She underscored the importance of the Japan-U.S. alliance, describing it as “the cornerstone of Japan’s foreign and security policy.” According to Kyodo News, she expressed her intention to build a relationship of trust with U.S. President Donald Trump, who is scheduled to visit Japan next week. The two leaders are expected to hold a summit on October 28, with discussions likely to focus on China’s growing assertiveness and North Korea’s continued ballistic missile launches.
“I will turn (people’s) anxieties about the present and future into hope and build a strong economy,” Takaichi declared during her extraordinary parliamentary session, as quoted by Kyodo News. Her words reflect a dual commitment to national security and economic renewal—a balancing act that will define her early tenure.
On the security front, Takaichi made it clear that Japan will not be standing still. She pledged to raise Japan’s defense budget to 2 percent of gross domestic product by March 2027, two years ahead of the previous target. “We need to proactively promote the fundamental strengthening of our nation’s defense capabilities to deal with various changes in the security environment,” she said, referencing the rapidly evolving threats in East Asia since Japan’s last security policy updates in 2022.
Her government plans to revise the long-term National Security Strategy and two other key documents by the end of next year. The emphasis on defense spending and strategic planning reflects what many observers see as Takaichi’s blend of fiscal dovishness and security hawkishness—a combination that has both supporters and detractors within Japan’s political establishment.
Yet, Takaichi’s vision is not limited to military matters. She outlined a suite of economic policies aimed at revitalizing Japan’s sluggish economy and tackling rising living costs, which she called a “top priority.” Among her proposals: abolishing the provisional gasoline tax rate that has been in place since 1974, and raising the nontaxable income threshold from 1.03 million yen (about $6,700) to 1.60 million yen within the year. These measures, she argued, would “raise incomes, improve consumer sentiment, enhance business profits and boost tax revenue.”
To cushion households from inflation, Takaichi’s government will design a new system combining income tax deductions and cash benefits, replacing a previously planned 20,000 yen per person handout. The latter, a campaign pledge by the ruling Liberal Democratic Party (LDP) in the July House of Councillors election, was widely criticized and ultimately scrapped in favor of more targeted relief.
Mindful of Japan’s demographic headwinds—an aging population and declining birthrate—Takaichi announced plans for a cross-party framework involving experts to rethink the country’s social security system. The goal, she said, is to strike a balance between costs and benefits in a way that ensures sustainability without sacrificing support for those in need.
Diplomatically, Takaichi’s speech was a study in careful calibration. On China, she acknowledged both the opportunities and challenges. “China is an important neighboring country with which Japan must build a constructive and stable relationship,” she stated, while also noting that “security and economic security concerns do exist.” Her call for “a comprehensive, strategically reciprocal relationship through candid dialogue between the two leaders” suggests Tokyo will continue its delicate dance with Beijing—seeking engagement without turning a blind eye to tensions in the East and South China Seas.
She also emphasized Japan’s intention to deepen multilateral security coordination, mentioning frameworks such as Japan-U.S.-Korea, Japan-U.S.-Philippines, and Japan-U.S.-Australia-India partnerships. The focus on a “free and open Indo-Pacific,” a phrase that has become a diplomatic mantra in Tokyo and Washington, reflects Japan’s desire to work with like-minded nations to counterbalance China’s regional ambitions.
On the domestic front, Takaichi’s speech highlighted the realities of coalition politics. After winning the LDP leadership on October 4 and seeing the centrist Komeito party exit the ruling coalition on October 10, Takaichi’s party formed a new alliance with the center-right Japan Innovation Party. However, as of October 24, the coalition still lacks a majority in the more powerful House of Representatives. Takaichi called on other political groups to cooperate with her minority government to “stabilize politics,” warning that “without political stability, we cannot pursue robust economic measures or effective diplomatic and security policies.” She pledged to “flexibly and sincerely” accept policy proposals from opposition parties, provided they do not conflict with the LDP’s core stances.
Opposition leaders, however, remain wary. Yoshihiko Noda, head of the largest opposition party, the Constitutional Democratic Party of Japan, voiced concern about the LDP’s rightward shift on security issues. “Instead of Komeito, we will act as a brake on the LDP,” Noda told reporters, signaling that the government’s legislative agenda may face significant hurdles.
Meanwhile, Takaichi addressed a range of other issues, from handling non-compliance by some tourists and foreign residents—vowing to “firmly” enforce rules while keeping a distance from xenophobia—to advancing discussions on dividing responsibilities between Tokyo and a potential “second capital” as a backup in times of crisis. This latter idea aligns with the “Osaka metropolis plan,” a pet project of the Japan Innovation Party aimed at reducing the concentration of power in Tokyo.
As Takaichi prepares for President Trump’s imminent visit—complete with a summit, a meeting with Emperor Naruhito, a tour of the U.S. Navy’s Yokosuka base, and a poignant encounter with families of Japanese nationals abducted by North Korea—her government faces a daunting to-do list. The coming days will test her ability to balance diplomacy, domestic reform, and coalition management, all while navigating the high expectations that come with breaking new ground as Japan’s first woman to hold the nation’s highest office.
In a country where political change is often measured in small increments, Takaichi’s early moves suggest a willingness to shake things up—though whether she can turn vision into reality remains to be seen.