Japan’s Prime Minister Sanae Takaichi reshuffled her Cabinet on Thursday (September 17, 2026) in a bid to turn around her waning popularity, but retained key Ministers as she pursues stronger ties with the U.S .
Japan faces U.S. President Donald Trump’s tough demands for bigger defence spending, more investment in America and measures to combat a weak yen .
The reshuffle is the first by the right-wing star of the governing Liberal Democratic Party (LDP) since she took office last October as Japan’s first female leader in modern history. It’s a widely used tactic by a Prime Minister to manage power balance within the party, policy priorities and public opinion. Ms. Takaichi also kept Finance Minister Satsuki Katayama, her longtime confidant who has been implementing her ambitious spending policy, and Economy and Fiscal Policy Minister Minoru Kiuchi. Trade Minister Ryosei Akazawa, who has dealt with Trump’s tariff and investment demands, also kept his job. Takaichi retained a kingmaker and former Prime Minister Taro Aso as LDP vice president, his brother-in-law Shunichi Suzuki as secretary-general and a few of her right-wing allies. Her rival Takayuki Kobayashi stayed on as head of the LDP policy research council. Ms. Takaichi, who will attend the UN General Assembly in New York later this month, is seeking a meeting with U.S. Ms. Hiroshi Nakatsuka, from the LDP’s junior coalition partner Japan Innovation Party, was appointed as Minister of Administrative Reform and Children Policies. Kazuo Yana replaced Norikazu Suzuki as Agriculture Minister, despite Mr. Yana’s alleged involvement in a political funds scandal. Internal Affairs Mnister Yoshimasa Hayashi, Ms. Takaichi’s party rival, was replaced by Mr. Hisayuki Fujii. Ms. Takaichi’s spending policy has already prompted U.S. Treasury Secretary Scott Bessent to urge Japan to stop the reflationary policy of weak yen and low interest rates.
In a party leadership revamp Wednesday (September 16, 2026), Ms. President Donald Trump ahead of his planned September 24 talks with Chinese President Xi Jinping, but prospects are unclear, according to Japanese media reports. Takaichi replaced 10 out of 18 Ministers. The tax measure, adopted on Monday (September 14, 2026) by the Cabinet, has added to concern about Japan’s already strained financial health.
