Japan PM Sanae Takaichi reshuffles Cabinet but keeps key US-facing ministers
Japan's Prime Minister Sanae Takaichi on Thursday reshuffled her Cabinet in a bid to arrest her falling popularity, while keeping key ministers in place as she pushes to maintain strong ties with the United States. The move comes as Japan faces tough demands from President Donald Trump for higher defence spending, more investment in America and steps to deal with the weak yen.
The reshuffle is Takaichi's first since she took office last October as Japan's first female leader in modern history. Once popular for her direct style and appeal among younger voters, she has seen support decline after pressing ahead with policies such as enforcing male-only succession rules for the imperial family when many people were expecting stronger measures to tackle inflation.
Takaichi retained Defence Minister Shinjiro Koizumi and Foreign Minister Toshimitsu Motegi, a sign of continuity in Japan's key policies and its ties with Washington. Both are also her main rivals within the ruling Liberal Democratic Party, and keeping them is seen as part of her effort to limit their influence.
She also kept Finance Minister Satsuki Katayama, a longtime confidant who has been carrying out her spending plans, and Economy and Fiscal Policy Minister Minoru Kiuchi. Trade Minister Ryosei Akazawa, who has handled Trump's demands on tariffs and investment, also stayed on.
In a party leadership reshuffle on Wednesday, Takaichi retained former Prime Minister Taro Aso as LDP vice president, Shunichi Suzuki as secretary-general and several of her right-wing allies. Her rival Takayuki Kobayashi remained head of the LDP policy research council.
Stable ties with Washington are also important for Takaichi as Japan tries to repair relations with China after her comment last year that Japan's military could intervene if China were to act against Taiwan. The strain has spilled into economic ties between the two neighbours.
Takaichi, who will attend the UN General Assembly in New York later this month, is seeking a meeting with Trump ahead of his planned September 24 talks with Chinese President Xi Jinping, though Japanese media reports said the chances remain unclear.
Her government is working to revise Japan's security and defence strategy documents by the end of the year to strengthen the country's offensive capabilities against threats from China, North Korea and Russia. Japan says it wants to adapt to "new ways of warfare" involving artificial intelligence, combat drones and their deployment.
The Takaichi government has already raised defence spending to 2 per cent of gross domestic product and wants to spend more by 2027. Japan is also likely to face US pressure for a further increase, possibly to 3.5 per cent of GDP.
The victory of Genta Koja in Sunday's Okinawa gubernatorial election is expected to help Takaichi push for a military buildup on Japan's southern islands as a deterrent to China. Koja is a conservative newcomer backed by the LDP and several other conservative parties.
Takaichi replaced 10 of the 18 ministers in her Cabinet. Hiroshi Nakatsuka, from the LDP's junior coalition partner Japan Innovation Party, was appointed minister of administrative reform and children policies. Kazuo Yana replaced Norikazu Suzuki as agriculture minister despite alleged involvement in a political funds scandal. Internal Affairs Minister Yoshimasa Hayashi, a party rival of Takaichi, was replaced by Hisayuki Fujii.
As part of her response to rising prices, Takaichi has pushed a two-year cut in the consumption tax to 1 per cent from 8 per cent, along with payouts to households. But the plan, which does not include funding details, has divided her party and could create problems when Parliament reconvenes in October.
The tax cut, approved by the Cabinet on Monday, has added to concerns over Japan's already strained finances. Takaichi's spending policy has also drawn criticism from US Treasury Secretary Scott Bessent, who urged Japan to move away from policies that keep the yen weak and interest rates low.
Overall, the reshuffle keeps Takaichi's main foreign, defence and economic team in place even as she brings in new faces, seeks to steady her position at home and prepares for pressure from Washington on defence, trade and economic policy.
