Japan’s political landscape has shifted dramatically with the appointment of Sanae Takaichi as the country’s first woman prime minister, and her debut policy speech on October 24, 2025, set the tone for what could be a transformative period in Japanese governance. Addressing a packed and at times boisterous parliament, Takaichi outlined her administration’s priorities, from fortifying US-Japan relations to tackling economic woes and immigration challenges. Her remarks, as reported by Agence France-Presse and TMT News, captured a nation on the cusp of change—and a world watching closely.
With President Donald Trump scheduled to visit Japan in just a few days, Takaichi wasted no time in signaling her intent to strengthen the alliance between Tokyo and Washington. "I will build a relationship of trust during President Trump’s visit, elevating the Japan-US relationship to new heights," she declared, echoing her admiration for strong-willed leaders like Margaret Thatcher. This vow comes at a pivotal moment, as Trump has been pressing US allies, including Japan, to shoulder a greater share of their own defense costs.
In a bold move that’s sure to please Washington, Takaichi announced that Japan will allocate two percent of its gross domestic product to defense spending in the 2025 fiscal year. This achievement hits the government’s target two years ahead of schedule. The timing is no accident: Trump’s visit precedes his high-stakes talks with Chinese President Xi Jinping in South Korea, and Japan’s commitment to defense spending is a clear signal of solidarity with the US amid rising regional tensions.
But Takaichi’s ambitions don’t stop at defense. Known as a China hawk before her premiership, she didn’t mince words about the shifting security landscape in East Asia. "The military activities of China, North Korea, and Russia have become a grave concern," she stated, warning that "the free, open, and stable international order we have grown accustomed to is being profoundly shaken by historic shifts in the balance of power and intensifying geopolitical competition."
China’s response was swift and pointed. According to Agence France-Presse, Chinese foreign ministry spokesman Guo Jiakun criticized Japan’s increased defense budget and the relaxation of arms export restrictions. "These moves inevitably raise serious doubts among (Japan’s) Asian neighbors and the international community about whether Japan is truly committed to an exclusively defensive posture and the path of peaceful development," Guo said.
While security and diplomacy loom large, Takaichi faces a domestic front that is equally challenging. Japan’s economy has been treading water, beset by stagnation and a shrinking population. According to official data released on October 24, 2025, inflation accelerated to 2.9 percent in September, up from 2.7 percent in August. This uptick in consumer prices has put additional pressure on households already feeling the pinch from rising costs of living.
Takaichi acknowledged these concerns in her speech, promising to "ease pressure on households" and instructing her cabinet to draw up measures to address the cost-of-living squeeze. However, as TMT News noted, she stopped short of providing detailed specifics about the promised economic package, leaving many wondering what concrete steps her government will take in the weeks ahead.
Her economic philosophy, rooted in calls for increased government spending and looser monetary policy to spur growth, has been well-documented. In fact, her appointment has buoyed Japanese stocks to record highs, as investors bet on a more activist fiscal approach. Yet, Takaichi has also made it clear that monetary policy decisions will remain the purview of the Bank of Japan (BoJ), which has recently begun the tricky process of "normalizing" its super-easy monetary policy after years of ultra-low interest rates.
The BoJ’s task is complicated by both domestic and international factors. Inflation has persisted above the bank’s target, making further interest rate hikes more likely. At the same time, the BoJ is "concerned about the impact of US tariffs on the Japanese economy and the potential for negative spillovers to corporate profits and wage growth," observed Abhijit Surya of Capital Economics, as quoted by Agence France-Presse. It’s a delicate balancing act, with the central bank walking a tightrope between supporting growth and containing inflation.
Immigration, always a sensitive subject in Japan, has taken on new urgency under Takaichi’s leadership. The country’s labor shortages are well known, and the prime minister admitted that "the country needed foreign workers to address labor shortages." Still, she was quick to address anxieties over the presence of foreigners, a reflection of Japan’s historically low levels of immigration and recent political shifts.
"Some illegal activities and breaches of rules by certain foreigners have created situations where members of the public feel uneasy and perceive unfairness," Takaichi said. She was careful to draw a distinction between legitimate concerns and xenophobia, promising that "the government will respond resolutely to such acts" while enforcing compliance with existing laws. She also pledged to examine "sensitive issues such as land acquisition," a nod to growing public scrutiny over foreign ownership and influence.
The rise of the populist Sanseito party, which has branded immigration as a "silent invasion," has added fuel to the debate. Their rhetoric has resonated with some voters, helping the party gain ground in recent elections. In response, Takaichi has taken a measured approach, appointing Kimi Onoda as minister responsible for fostering "a society of well-ordered and harmonious coexistence with foreign nationals." The position existed previously but lacked a dedicated minister, and Onoda’s appointment has already sparked a wave of misinformation online, with false claims circulating that she was named minister for "mass deportations."
It’s a complex balancing act for Takaichi, who must navigate between the economic necessity of immigration and the political risks posed by rising nationalist sentiment. Her approach appears to be one of cautious pragmatism—welcoming foreign workers where needed, but promising strict enforcement to reassure a wary public.
Meanwhile, the shadow of her predecessor, Shigeru Ishiba, looms large. Ishiba’s brief tenure was marred by public dissatisfaction over rising prices, which contributed to the ruling party’s electoral setbacks. Takaichi is keenly aware of these pitfalls, and her early moves suggest a determination to avoid similar missteps.
As Japan braces for President Trump’s visit and the challenges of an increasingly volatile world, all eyes are on Takaichi’s next steps. Her promises are bold, her challenges formidable, and her margin for error slim. For now, her administration’s direction is clear: a stronger alliance with the US, a tougher stance on security, and a pragmatic—if still unfolding—approach to economic and social issues. The coming months will reveal whether she can deliver on these ambitious pledges and steer Japan through uncertain waters.