Takaichi Reshuffles Japan Cabinet, Keeps Key Ministers for US Ties

Japanese Prime Minister Sanae Takaichi reshuffled her Cabinet on Thursday, replacing 10 of 18 ministers while retaining key figures in defense, foreign affairs and finance as she seeks to reverse a decline in public support and maintain stable ties with Washington.

The reshuffle is the first since Takaichi, a right-wing star of the governing Liberal Democratic Party, took office last October as Japan's first female leader in modern history. Such moves are commonly used by Japanese prime ministers to balance party factions, policy priorities and public opinion.

Takaichi kept Defense Minister Shinjiro Koizumi and Foreign Minister Toshimitsu Motegi, both main party rivals, in a move seen as ensuring continuity in Japan's key policies and relations with the United States while containing their influence. Finance Minister Satsuki Katayama, a longtime confidant implementing Takaichi's spending policy, also retained her post, as did Economy and Fiscal Policy Minister Minoru Kiuchi and Trade Minister Ryosei Akazawa, who has handled US tariff and investment demands.

In a party leadership revamp on Wednesday, Takaichi kept former Prime Minister Taro Aso as LDP vice president, Shunichi Suzuki as secretary-general and Takayuki Kobayashi as head of the party's policy research council.

Japan faces pressure from US President Donald Trump for greater defense spending, more investment in America and measures to address a weak yen. Takaichi, who will attend the UN General Assembly in New York this month, is seeking a meeting with Trump ahead of his planned Sept. 24 talks with Chinese President Xi Jinping, though prospects remain unclear.

Maintaining stable US ties is also important as Japan works to mend relations with China following Takaichi's comment last year that Japan's military could intervene if China took action against Taiwan. The tensions have affected economic ties between the neighbors.

Takaichi's government is revising security and defense strategy documents by year-end to bolster offensive capabilities against threats from China, North Korea and Russia, adapting to new warfare methods involving artificial intelligence and combat drones. Defense spending has risen to 2% of GDP, with plans to increase further for 2027, though Japan may face US demands to raise it to as much as 3.5% of GDP.

The victory of Genta Koja, a conservative backed by Takaichi's LDP, in Sunday's Okinawa gubernatorial election is expected to help her push for a military buildup on Japan's southern islands.

Among the changes, Hiroshi Nakatsuka of the junior coalition partner Japan Innovation Party was appointed minister of administrative reform and children policies. Kazuo Yana replaced Norikazu Suzuki as agriculture minister despite alleged involvement in a political funds scandal. Internal Affairs Minister Yoshimasa Hayashi, a party rival, was replaced by Hisayuki Fujii.

Takaichi has pushed a two-year cut in the consumption tax to 1% from 8% and household payouts to combat rising prices, but the plan lacks funding details and has divided her party, potentially causing problems when parliament reconvenes in October. The tax measure, adopted by the Cabinet on Monday, has added to concerns about Japan's strained finances. Her spending policy has prompted US Treasury Secretary Scott Bessent to urge Japan to stop its reflationary policy of a weak yen and low interest rates.