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Trump Endorses Japan's Takaichi Ahead of Key Election

Isaac Bennett
Summary:

Amid market jitters and China tensions, Trump endorses Japan's PM Takaichi as she seeks a mandate.

U.S. President Donald Trump has issued a "total endorsement" for Japanese Prime Minister Sanae Takaichi just days before Japan's national election on Sunday. In a post on his Truth Social platform, Trump also announced he would host Takaichi at the White House on March 19.

Takaichi, Japan's first female prime minister, is seeking a clear mandate from voters for her economic and defense policies. While her coalition is projected to win, her plans have already created jitters among investors and increased diplomatic friction with China.

According to recent opinion polls, Takaichi's Liberal Democratic Party (LDP) and its coalition partner, the Japan Innovation Party (Ishin), are on track to secure around 300 seats in the 465-seat lower house of parliament. This would represent a significant expansion of the slim majority they currently hold.

Trump's Endorsement Amid Market Jitters

In his statement, Trump praised Takaichi's leadership, saying she and her coalition deserve "powerful recognition" for their work.

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

Despite the high-level backing, Takaichi’s core economic pledge has shaken financial markets. Her proposal to suspend the 8% sales tax on food to help households with rising costs has raised serious questions about fiscal stability in a nation with the world's largest public debt.

The plan is estimated to cost 5 trillion yen ($30 billion) in annual revenue. In response, investors have been selling off Japanese government bonds, sending the yen into a crisis. However, some analysts believe a decisive victory for the LDP, which has dominated post-war Japanese politics, might be the "least-worst option" for markets, given that other parties are proposing even larger tax cuts and spending programs.

Navigating Tense Relations with China

The relationship between Takaichi and Trump has been a focal point since she became prime minister in October. One of her first acts was to host Trump in Tokyo, where she presented him with a putter that belonged to his late friend and former Prime Minister Shinzo Abe. The meeting, where Takaichi pledged billions in investments, was seen as a reaffirmation of the strong U.S.-Japan alliance.

However, her tenure has also been marked by a significant diplomatic dispute with China. Weeks after taking office, the 64-year-old prime minister publicly detailed how Japan might react to a Chinese attack on Taiwan, triggering the most significant row with Beijing in over a decade.

Sources revealed that Trump, who is working to preserve a trade truce with China, privately asked Takaichi in a November phone call to avoid further antagonizing Beijing. A strong election victory could give Takaichi more leverage in this dispute, though her plans to bolster Japan's military will likely draw further criticism from China, which views the move as a return to past militarism.

Domestic Popularity and Election Variables

While the friction with China is beginning to impact Japan's economy, it has had little effect on Takaichi's high approval ratings at home. She has gained an almost iconic status among some supporters, who have rushed to buy the same handbag she carries and the pink pen she uses in parliament.

The final margin of victory could be influenced by several factors. Turnout among younger voters, who are historically less likely to vote, could play a key role. Record snowfall in parts of the country might also suppress turnout. Takaichi has stated that if she fails to maintain her coalition's majority, she will resign.

A Pattern of Foreign Endorsements

Trump's intervention in the Japanese election is part of a broader trend of his administration seeking to influence foreign political outcomes. He previously backed Argentine President Javier Milei, citing U.S. financial support as a key to Milei's legislative success in 2025. He also recently endorsed Hungarian Prime Minister Viktor Orban ahead of an April vote.

Analysts suggest these endorsements signal a growing pattern of aligning with and supporting right-wing leaders across the globe. In his final praise for Takaichi, Trump described her as "a strong, powerful and wise Leader, and one that truly loves her country."

To stay updated on all economic events of today, please check out our Economic calendar
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