Trump endorses Japan's Takaichi ahead of Sunday election

Japan’s first female prime minister, who is leading a coalition expected to win, according to polling, seeks a public mandate for her controversial spending proposals and military expansion, which have raised concerns among investors and strained ties with China.

Polls suggest Takaichi's Liberal Democratic Party (LDP) and its ally, the Japan Innovation Party (Ishin), could secure around 300 seats in the 465-seat lower house of parliament, far surpassing the slim majority they currently hold.

Takaichi Set for Victory Despite Investor Concerns

Trump shared a message via Truth Social on Thursday, praising Takaichi: "Prime Minister Takaichi is someone who deserves powerful recognition for the job she and her Coalition are doing," he wrote.

"Therefore, as President of the United States, it is my Honor to give a Complete and Total Endorsement of her, and what her highly respected Coalition is representing."

However, Takaichi's pledge to suspend the 8% sales tax on food to assist households facing rising prices has unsettled investors, particularly given Japan's significant debt burden.

Recently, there has been a flight from Japanese government bonds and a crisis-level dip in the yen, as concerns mount over how Tokyo will finance the projected ¥5 trillion ($30 billion) annual revenue shortfall.

Still, some analysts suggest that a solid victory for the LDP, which has ruled Japan for most of the postwar period, may present the least risky option for markets compared to other parties advocating for deeper tax cuts and wider spending.

Diplomatic Tensions and Political Clout

Following her election as prime minister in October, one of Takaichi's first actions was hosting Trump in Tokyo.

She gifted him a putter that once belonged to Japan's former Prime Minister Shinzo Abe, and their meeting was praised by Trump as a reaffirmation of the strong Japan-US alliance, with Takaichi promising billions in investments.

However, shortly afterwards, Takaichi ignited a major diplomatic rift with China by publicly discussing Japan’s potential response to a Chinese assault on Taiwan.

In a private call, Trump urged Takaichi to avoid further antagonising Beijing, sources revealed.

If Takaichi secures a decisive victory, it could bolster her position in the ongoing standoff with China, according to Japanese officials.

Nevertheless, Beijing has yet to show signs of retreat.

Takaichi's plan to bolster Japan's military has also drawn criticism from Beijing, which interprets her actions as a revival of Japan’s wartime militarism.

Rising Popularity and Election Outlook

Despite the diplomatic tensions, Takaichi’s approval ratings remain strong, and she has even become a style icon for some voters, with her pink pen and handbag gaining popularity.

The youth vote, traditionally less engaged than older demographics, could play a key role in determining the election outcome.

Heavy snowfall in parts of Japan may also affect voter turnout.

If the polls prove inaccurate and Takaichi fails to secure a majority, she has pledged to step down.

Trump concluded his endorsement by stating, "Takaichi has already proven to be a strong, powerful and wise Leader, and one that truly loves her country."

This endorsement follows Trump’s recent support for other right-wing leaders internationally, including Argentine President Javier Milei and Hungarian Prime Minister Viktor Orban.

Analysts note this growing pattern of US support for right-wing figures in foreign elections.

Reuters