Moody’s Analytics: Japan trade deal could deepen political strains in Tokyo | investingLive

While the new U.S.-Japan trade deal is making headlines, its most immediate impact may be political, according to Moody’s Analytics economist Stefan Angrick.

Coming just days after Prime Minister Ishiba’s ruling coalition lost its majority in the upper house, the timing has raised questions. Angrick suggests Ishiba may have delayed finalising the deal until after the vote, having previously framed tariff threats as a national crisis to justify political unity. Now that the tariff risk is easing, that argument appears less convincing.

If Ishiba were to step down, his successor might face pressure to reassess a deal critics see as tilted in Washington’s favour.

There are reports Ishiba has already made the decision to step aside: