Japan is on the cusp of a historic transformation as Sanae Takaichi, a veteran lawmaker with over three decades of political experience, is poised to become the country’s first female prime minister. Her ascent to the top of the Liberal Democratic Party (LDP) on October 4, 2025, signals both a symbolic breakthrough in Japan’s male-dominated political landscape and a return to hardline conservative governance, echoing the legacy of her mentor, the late Shinzo Abe.
Takaichi, 64, clinched the LDP presidency following a period of turmoil for the ruling party. Consecutive election losses in 2024 and 2025 stripped the LDP and its long-time coalition partner Komeito of their majority in both houses of parliament. The outgoing prime minister, Shigeru Ishiba, resigned in the wake of these setbacks, setting the stage for Takaichi’s rise. Although the LDP remains the largest force in the lower house—which ultimately decides the national leader—Takaichi must now navigate a fractured parliament and forge new alliances to secure her formal confirmation when the Diet convenes in mid-October.
In her victory speech, Takaichi acknowledged the party’s loss of direction and pledged to restore public trust through reform and humility. She struck a determined tone, vowing to “work, work, work, work, work” to transform “people’s anxieties about their daily lives and the future into hope,” as reported by the Associated Press and echoed by CNBC. Yet, her promise of relentless effort masks a series of daunting challenges—both within her party and across the nation.
Perhaps the most immediate hurdle is the LDP’s precarious hold on power. Without a majority, Takaichi’s government will need to secure support from at least one opposition party to form a working coalition. According to research firm BMI, this task is complicated by the opposition’s dilemma: joining the LDP could grant them greater influence but risks alienating voters already dissatisfied with the ruling party. Komeito, the moderate Buddhist-backed partner of the LDP for 26 years, has openly expressed discomfort with Takaichi’s ultra-conservative positions. On October 4, Komeito leader Tetsuo Saito warned that his party had “big worry and concern” about her stances, particularly her revisionist views on wartime history and regular visits to the controversial Yasukuni Shrine. Saito made it clear that unless Takaichi moderates her positions, Komeito may walk away from the coalition—a move that would further destabilize the government.
Takaichi’s leadership style is defined by discipline and loyalty to conservative ideals. She is a staunch proponent of “Abenomics”—the economic strategy of her predecessor Shinzo Abe—favoring loose monetary policy, aggressive fiscal spending, and structural reforms. She has previously criticized the Bank of Japan’s plans to raise interest rates, insisting on continued stimulus to combat economic stagnation. The Bank of Japan ended its negative interest rate regime in March 2024, but Takaichi has signaled her preference for low rates to support growth, even if it means tolerating higher inflation. William Pesek, author of Japanization: What the World Can Learn from Japan’s Lost Decades, told CNBC, “We can already guess that she won’t bring inflation down, because if she’s going to double down on Abenomics of the past, which means a sharply weaker yen, which means more government spending, that arguably means more inflation.”
Her domestic agenda is ambitious, with a focus on what she terms “crisis management investments.” These include massive government spending on food security, energy independence, and high-tech sectors such as AI, semiconductors, and battery technology. Takaichi supports restarting Japan’s nuclear reactors and has proposed the creation of a national intelligence agency to bolster economic and security coordination. She also advocates screening foreign investments in sensitive industries and tightening rules on land purchases by non-Japanese citizens—policies that align with a growing nationalist sentiment and the influence of far-right populist movements like Sanseito, which hailed her victory as a step toward “anti-globalist” policies.
Despite her trailblazing status as a woman in Japanese politics, few expect Takaichi to champion feminist causes. She opposes same-sex marriage, the use of separate surnames for married couples, and the idea of female emperors—positions that reflect her adherence to traditional family structures and conservative social values. Her rise, while inspirational to some, is not seen as a harbinger of progressive change on gender equality. Instead, she is expected to focus on pragmatic measures to reverse Japan’s demographic decline, such as tax deductions for childcare and incentives for companies to support working parents.
Takaichi’s approach to foreign policy is equally assertive. She has pledged to strengthen the Japan-U.S. alliance, describing it as essential to the country’s security and diplomacy. Her relationship with U.S. President Donald Trump is seen as crucial, especially as Trump plans a trip to Asia later this month. Takaichi has promised to honor existing tariffs and investment agreements between the outgoing Ishiba government and the Trump administration, but she has also hinted at renegotiating aspects of the U.S.-Japan trade deal, particularly Japan’s $550 billion investment pledge. According to William Pesek, the LDP chose Takaichi because she was “probably the best option to face off with Trump at this very tense moment between Trump and the rest of the world.”
Her foreign policy vision extends to the broader Indo-Pacific. She has vowed to expand trilateral partnerships with South Korea, Australia, and the Philippines, while also signaling closer cooperation with Taiwan—a move that has already drawn praise from Taiwanese President Lai Ching-te, who described her as a “staunch friend of Taiwan.” However, her repeated visits to the Yasukuni Shrine, which honors Japan’s war dead—including convicted war criminals—have sparked outrage in China and South Korea, who see the site as a symbol of Japan’s militarist past. Takaichi’s revisionist stance on wartime history, including criticism of the 1995 Murayama Statement that acknowledged Japan’s aggression and colonial rule, threatens to reignite regional tensions just as South Korea seeks pragmatic cooperation and China remains wary of Japan’s assertiveness.
Within her own party, Takaichi faces the delicate task of uniting a divided LDP. She is expected to announce her cabinet lineup on October 7, with reports indicating she will reward loyalists and possibly appoint Taro Aso as deputy prime minister and Shunichi Suzuki as party secretary general. Her willingness to consider former Abe faction lawmakers implicated in scandals for senior posts has drawn public criticism and concern about the party’s commitment to reform. Yoshihiko Noda, head of the largest opposition party, called the idea “totally unthinkable.”
As Japan stands at this crossroads, Takaichi’s leadership represents both continuity and change. Her success will depend on her ability to balance conservative instincts with pragmatic governance, unite a fractured political landscape, and navigate the treacherous waters of domestic and international politics. Whether she can deliver on her promise to turn anxiety into hope remains to be seen, but her tenure is certain to mark a defining chapter in Japan’s ongoing search for identity and purpose in the 21st century.
