Business NewsSanae Takaichi Set to Become Japan’s First Woman Prime Minister Amid U.S. Trade and Security TensionsLast updated: October 4, 2025 12:46 pmAuthor- Jitesh KanwariyaShare8 Min ReadSHAREJapan is preparing to make history with Sanae Takaichi set to become the nation’s first female prime minister after winning the leadership of the ruling Liberal Democratic Party (LDP). The 64-year-old politician, known for her strong conservative stance and admiration for former British leader Margaret Thatcher, is expected to be confirmed by parliament as early as the week of October 13.ContentsFrom Party Leadership to Prime MinistershipThe Challenge of Reviving the LDPHer victory marks a significant moment in Japanese politics. For a country that has never had a woman in its top political office, Takaichi’s rise is both groundbreaking and symbolic. But with this historic win comes a daunting list of challenges: an ageing population, economic pressures, rising immigration debates, and increasing U.S. trade and security tensions.From Party Leadership to Prime MinistershipOn Saturday, Takaichi emerged as the winner of the LDP leadership race after defeating Shinjiro Koizumi, a 44-year-old lawmaker and son of a former prime minister. Koizumi, despite his popularity and modern appeal, lost in the run-off vote against Takaichi, paving the way for her to lead the LDP and, by extension, Japan.Koizumi had represented a youthful, reformist image for the party, even drawing attention for his unconventional personal choices, such as taking paternity leave. However, concerns about his lack of political depth and experience seemed to weigh against him.Before the final vote, moderate candidate Yoshimasa Hayashi, known as “Mr. 119” after Japan’s emergency phone number, was eliminated, along with two other contenders.With her win, Takaichi is now set to become Japan’s fifth prime minister in as many years, reflecting a period of political instability at the highest level.Also Read: Trump Thanks Arab and Muslim Nations for Supporting Middle East Peace PlanThe Challenge of Reviving the LDPOne of Takaichi’s first and most pressing challenges will be to revive the Liberal Democratic Party, which has faced setbacks and declining voter trust. The outgoing prime minister, Shigeru Ishiba, resigned after his coalition lost its majority in both houses of parliament.“The LDP must regain trust, and an overhaul is needed for us to start afresh,” Koizumi had remarked during the campaign, calling the party’s situation a “crisis.”Takaichi inherits this crisis. For a party that has governed almost continuously since 1955, rebuilding confidence among voters will be essential for maintaining its long-standing dominance.Immigration Debate Gains SpotlightA significant portion of the election campaign centered on immigration, a rare but increasingly sensitive issue in Japan. A rising populist party, Sanseito, has been gaining traction with its anti-immigration rhetoric, describing immigration as a “silent invasion” and blaming newcomers for various social problems.Both Takaichi and Koizumi sought to appeal to voters concerned about immigration. Takaichi suggested that Japan should “reconsider policies that allow in people with completely different cultures and backgrounds.”Koizumi echoed this concern, warning that “illegal employment of foreigners and the worsening of public safety are leading to anxiety among local residents.”Such comments reflect a shift in tone from mainstream Japanese politicians, who traditionally avoid alarmist rhetoric. Currently, people born abroad make up only around 3 percent of Japan’s population, but the debate is gaining prominence, especially in multicultural cities such as Kawaguchi.While some residents, like 66-year-old pensioner Kimiko Tamura, expressed fears about tolerance toward foreigners weakening, others like Nguyen Thu Huong, a Vietnamese immigrant who has lived in Japan for 14 years, noted that despite cultural differences, “Japan is a nice place to live.”Economic Policies and Abenomics LegacyEconomically, Takaichi is expected to follow the footsteps of her mentor, former Prime Minister Shinzo Abe, whose policy framework known as “Abenomics” combined aggressive monetary easing with heavy fiscal spending.In the past, Takaichi has backed similar approaches, supporting stimulus measures to drive growth in Japan’s struggling economy. However, during the campaign, she appeared more cautious, moderating her stance to appeal to a wider base.Her economic leadership will be closely watched as Japan continues to grapple with slow growth, an ageing population, and labor shortages, all while balancing global trade and security tensions with the United States.A Hawk on China, But a Moderate ToneTakaichi has long been seen as a China hawk, known for her hardline views and frequent visits to the controversial Yasukuni war shrine, which often stirs tensions with Beijing. However, during the campaign, she struck a somewhat more moderate tone on China, signaling a willingness to manage relations carefully despite her conservative roots.This balancing act will be critical as Japan navigates its role in a region shaped by U.S.-China rivalry. Her leadership will be tested on how effectively she handles Japan’s security commitments with the United States while managing tensions with China.Gender Equality QuestionsDespite the milestone of being Japan’s first woman prime minister, Takaichi is not seen as a champion of women’s rights. Critics argue that she has little interest in advancing gender equality policies.Yuki Tsuji, a professor at Tokai University, noted: “Takaichi has no interest in women’s rights or gender equality policies.” This has led to concerns that celebrations over her historic achievement may be short-lived if her leadership does not translate into broader progress for women in Japanese society.The Road AheadAs Sanae Takaichi prepares to step into office, she faces a heavy political burden. Her challenges include:Restoring public trust in the ruling LDPReviving the economy and shaping a sustainable policy beyond AbenomicsManaging immigration debates amid rising populist pressureNavigating U.S. trade and security tensionsBalancing foreign policy with China and neighboring countriesHer leadership will also be a test of whether Japan is ready to embrace not only its first woman prime minister but also a leader from the conservative wing of its ruling party.ConclusionSanae Takaichi’s rise marks a historic chapter in Japan’s political history. As the first woman set to become prime minister, she enters office at a time of economic strain, social unease , and geopolitical complexity.While her supporters view her as a strong, decisive leader in the mold of Margaret Thatcher, critics remain skeptical about her commitment to social reforms, particularly gender equality.Her success or failure will not just shape Japan’s immediate political direction but will also determine how the world views her leadership at a time of heightened U.S. trade and security tensions.Key Highlight: Sanae Takaichi is set to become Japan’s first woman prime minister, but she faces a tough road ahead with economic challenges, immigration debates, and global security pressures.Click here to explore:FII DII DataIPOBSE SensexYou Might Also LikeGoogle’s Future Lies in Cloud and Subscriptions, Not Just Ads, Says India Head Preeti LobanaWhat’s Triggering IndiGo’s Flight Cancellations and How It Could Impact Future OperationsDespite Tariff Tensions, India Remains Key Growth Market for Google, Says Country Head Preeti LobanaAuto Industry Faces a Tough New Year as Rising Costs Clash With Stricter Anti-Profiteering ScrutinyMichael Burry Warns AI Bubble Could Burst Harder Than 2000, Hitting Nvidia and Palantir the MostShare This ArticleFacebookCopy LinkShareByJitesh KanwariyaFollow: I am Jitesh Kanwariya is a professional stock market analyst and F&O trader with expertise in derivatives and market research. 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