Shigeru Ishiba Signals Intention to Stay, Vows to Advance U.S.-Japan Trade Deal

TradingKey - Japanese Prime Minister Shigeru Ishiba has signaled his intention to remain in office following a ruling party meeting, emphasizing his commitment to advancing the U.S.-Japan trade and investment agreement. The statement comes amid growing internal pressure after the ruling party suffered setbacks in recent elections.

On July 26, Ishiba held a more than four-hour discussion with Liberal Democratic Party (LDP) lawmakers. After the meeting, he stated he would make an “appropriate judgment” based on the views expressed, adding that his decision on tenure must align with public opinion and intra-party consensus — a clear indication that he intends to stay on.

Ishiba specifically highlighted that implementing the recently negotiated U.S.-Japan trade and investment arrangement is a top priority, suggesting that his continued leadership would ensure stability in Japan’s external economic agenda. The remarks underscore his effort to position himself as a key “executor” of the deal to strengthen his political standing.

Earlier, the so-called "$55 billion investment agreement" sparked confusion over its terms. The U.S. claimed it would receive 90% of the profits from joint investments, but Japan swiftly clarified that profit distribution would be based on actual capital contributions and shared risk — not one-sided concessions. Tokyo also stressed that only a non-binding verbal understanding has been reached, with no formal or legally binding document signed.

The arrangement was reportedly reached during a brief 70-minute meeting between Japanese and U.S. negotiators, raising skepticism about its substance and long-term viability.

With Ishiba’s government previously seen as politically unstable, the Trump administration had expressed concern that a leadership change in Japan could force a renegotiation — prompting Washington’s push for a “commit first, negotiate later” approach.

Now, Ishiba’s apparent decision to remain in office could help ease U.S. concerns and provide political continuity for the agreement’s next phase. However, given the lack of formal documentation and limited domestic public support, the arrangement remains fraught with uncertainty.