Core Viewpoint - The ruling coalition in Japan, consisting of the Liberal Democratic Party (LDP) and Komeito, has lost its majority in both houses of the National Diet, leading to increased pressure on Prime Minister Shigeru Ishiba and uncertainty in Japan's political landscape and foreign relations [1][2]. Election Results - The Japanese House of Councillors has 248 seats, with 125 contested in the recent election. The ruling coalition secured only 47 seats, failing to achieve a majority, marking the first time since the LDP's establishment in 1955 that it has lost majority control in both houses [2][3]. - The LDP's performance was particularly poor in local and major urban districts, winning only 14 out of 32 single-member districts, and losing significant ground in traditional strongholds [2][3]. Reasons for Defeat - Public dissatisfaction with rising prices and the government's inadequate response has been identified as a primary reason for the ruling coalition's defeat. Voter concerns about inflation, particularly in rice prices, have overshadowed other issues, with many voters prioritizing "price countermeasures" [3][4]. - The LDP's cash handout policy of 20,000 yen per person was criticized as ineffective and insufficient to alleviate the economic burden on citizens, contributing to a decline in public support for Ishiba's cabinet, which fell to 20.8%, nearing the threshold for political instability [3][4]. Shift in Voter Sentiment - There is a growing fatigue among voters towards traditional parties, with new parties like the Constitutional Democratic Party and the emerging populist party gaining traction. The former increased its seats from 9 to 22, while the latter rose from 1 to 15 [4]. - The new parties have resonated with voters by addressing issues such as tax exemptions for workers and anti-foreign sentiment, utilizing social media effectively to mobilize support [4]. Challenges in U.S. Negotiations - Despite the election setback, Ishiba has stated he will not resign, with some within the LDP suggesting that maintaining continuity in U.S. negotiations is crucial [5]. - The U.S. has indicated potential tariffs on Japan, complicating the government's bargaining position. Analysts express concerns that the weakened ruling party may struggle to secure domestic support for concessions in sensitive areas like agriculture and automobiles [6][7]. Future Governance Outlook - The ruling coalition's minority status will necessitate greater reliance on opposition parties for policy implementation, particularly in the upcoming extraordinary Diet session [7]. - There are rising calls within the LDP for Ishiba to step down, with discussions about a leadership change already underway, reflecting historical precedents where leaders resigned following electoral defeats [7].