Takaichi Caught Between a Staff Scandal and U.S. Pressure
By Takuya Nishimura, Senior Fellow, Asia Policy PointFormer editorial writer for the Hokkaido Shimbun
You can find his blog, J Update here.
October 12, 2026
Although Japanese Prime Minister Sanae Takaichi is trying to focus on the economy during the Diet’s fall session, two unexpected issues, one domestic, the other international, have upset her agenda. Irritated about Takaichi’s handling of a scandal concerning the Agriculture minister, opposition parties have slowed the procedures for considering bills. Meanwhile, U.S. sanctions on the International Criminal Court (ICC) have paralyzed Takaichi’s diplomacy with the U.S. despite her unwavering support for President Donald Trump. The prime minister now faces the hardest time since she took the seat a year ago.
In her October 5 policy speech, Takaichi introduced an old Chinese expression called Keisei-saimin [経世済民], which could be interpreted as “Good governance saves the people.” This saying became the etymology of “economy [経済]” in Japan. The faction led by former premier Noboru Takeshita, Keisei-kai [経世会], was named after this phrase. By using the idiom, Takaichi hoped to show her determination to decrease the consumption tax and tackle price inflation.
It was remarkable for Takaichi to refer to the political principle of the former Takeshita faction in the Liberal Democratic Party (LDP) because it had been a political enemy of the former Abe faction, or Seiwa-kai [清和会], with which Takaichi herself had once been affiliated. Takaichi has begun to distance herself from Abe in other ways as well.
In Diet discussions, she has distinguished her economic policy from past reflation policy. Reflation had been a fundamental element of Abenomics. But U.S. Treasury Secretary Scott Bessent’s demand that Japan stop the reflation has taken precedence. Thus, while keeping with such Abe-oriented diplomatic policies as the Free and Open Indo-Pacific (FOIP), Takaichi is departing from other of Abe’s political stances.
Opposition parties are still skeptical about Takaichi’s economic policy. Komeito and the Democratic Party for the People have requested in Diet discussion a greater distribution of public benefits rather than a consumption tax cut to deal with price inflation. Takaichi has insisted that a consumption tax cut is the best policy in terms of sufficiency and swiftness. However, she has not yet answered the question of how she has found or will find fiscal resources for the tax cut. She has said only, “Don’t worry.”
Although Takaichi had expected to discuss economic policies in the Diet, opposition leaders did not allow it by asking why Takaichi had appointed Kazuo Yana as the Minister of Agriculture, Forestry and Fisheries in her September cabinet reshuffling. Yana had boasted in May that, earlier in the year, he, as an individual Diet member, had cut the national government’s budget for road construction in two municipalities in his electoral district – in retaliation for their mayors’ support of Yana’s rival in the February Lower House election. Admitting his remarks were inappropriate, Yana retracted the comment, inviting further criticism about eating his words.
While a lawmaker can check the policies of ministries, influencing a specific policy may be incompatible with his obligations as a representative of all the people. Yana’s interference in national budget work to take revenge against the mayors was the opposite of that. Yana’s comment ignited a traditional skepticism of pork barrel shenanigans by LDP politicians through shadowy relationships with the ministries.
In response to a request that she dismiss Yana, Takaichi insisted on keeping him in his position, arguing that the budget had in fact been appropriately distributed to local governments. Although the prime minister usually replaces a cabinet member who becomes embroiled in scandal, Takaichi chose the opposite course. [Yana resigned Wednesday, October 14.]
Not only the opposition parties but also members of the LDP question her decision to retain Yana. LDP Executive Acting Secretary General, Koichi Hagiuda, criticized Yana’s speech as arrogant and intolerable. Opposition parties are united in sponsoring a censure motion in both chambers of the Diet. The opposition parties have a tough road ahead in the Lower House since the LDP has a majority, but they may have a chance to pass the censure motion with a majority in the Upper House. The opposition parties have also decided to refuse to discuss bills related to Yana in the Upper House. With this atmosphere it is uncertain whether Takaichi can get a consumption tax cut through the Diet.
Further pressure on Takaichi has come from the U.S. Secretary of State Marco Rubio who announced sanctions on the ICC. “We will ban transactions with this rogue court, cutting off their resources and crippling its ability to operate,” Rubio said in a statement. The sanctions are highly unpopular in Japan ever since the ICC’s Japanese president was targeted with personal sanctions in August.
Takaichi left a short comment on her social media account, expressing a “deep concern” on the sanctions decision of the U.S. Japan also joined the joint statement of foreign ministers of European countries and Canada which regretted and strongly disagreed with U.S. sanctions. Takaichi endorsed the statement but has taken no further action at the leaders’ level so far.
By now, Takaichi is one of the few world leaders who wholeheartedly support Trump. In her meeting with him in October 2025, Takaichi praised Trump as the only leader who could bring peace and prosperity to the world. She even nominated him for the Nobel Peace Prize. Through such unstinting loyalty, Takaichi has put herself in a position in which her criticism of any Trump policy would not make sense.
The Diet begins discussion of economic measures at the Committee on the Budget in the Lower House this week. If Yana remains in place, Takaichi will be asked about her responsibility for naming him agriculture minister in which position he can control the budget for farmers or the price of rice. On the diplomatic side, the Trump administration seems to be aligning the U.S. with Russia in the war in Ukraine. Such a commonality of interests might lead to other coordinated actions, such as opposition to the ICC. Whether Takaichi can find a way to break through and preserve Japan’s independence deserves scrutiny.




