Japan’s Takaichi Shapes First Cabinet, with an Eye on Next Year’s Leadership Vote

Japan’s first cabinet reshuffle under Prime Minister Sanae Takaichi is taking shape around continuity. Asahi Shimbun reported that Takaichi is coordinating to retain Defense Minister Shinjiro Koizumi, who has been involved in revising Japan’s three security documents and expanding defense equipment exports.

Koizumi is a seven-term lower house lawmaker in his 40s and the son of former Prime Minister Junichiro Koizumi. He previously served as environment and agriculture minister, and he has also held the ruling Liberal Democratic Party’s election strategy post. The article says he has built a relationship with U.S. Defense Secretary Pete Hegseth while working on security policy.

The defense minister is also a political rival of Takaichi. They faced each other in the final round of last year’s LDP leadership election. Even so, he is expected to remain in the cabinet, alongside Chief Cabinet Secretary Minoru Kihara and Foreign Minister Toshimitsu Motegi.

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responsible proactive fiscal policy

Motegi’s retention is presented as especially significant. Takaichi’s government has faced worsening relations with China since she took office, while it also seeks stable ties with the administration of U.S. President Donald Trump. Keeping Motegi could help manage those relationships and strengthen Takaichi’s ties with former LDP Vice President Taro Aso, whose faction remains influential.

The ministers responsible for Takaichi’s signature economic policy of “responsible proactive fiscal policy” and for handling Trump’s tariff measures are also expected to stay. Finance Minister Satsuki Katayama is leading preparations for a consumption-tax cut planned for next spring and for Takaichi’s preferred strategy of reviving the economy through fiscal expansion. She is also said to communicate smoothly with U.S. Treasury Secretary Scott Bessent on tariffs and the dollar-yen exchange rate.

The focus on stability is fueling speculation that Takaichi is preparing for next year’s LDP presidential election. She won a by-election for the party presidency after former Prime Minister Shigeru Ishiba stepped down, but inherited his term and must face another vote next year. Keeping Koizumi in the cabinet may also tie down one of her major rivals. Attention is likewise on Internal Affairs Minister Yoshimasa Hayashi, who placed third in last year’s leadership contest and has been making regular local visits. Jiji Press called Hayashi’s activity a threat to Takaichi, while noting that remaining in the cabinet could make it harder for him to run next year.

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Koizumi’s movements pose a threat to Prime Minister Takaichi, who is seeking re-election in next year’s presidential election.