Japan Prime Minister Sanae Takaichi reshuffled her Cabinet on September 17, retaining several key ministers as her government seeks policy continuity amid domestic political and economic pressure. Defence Minister Shinjiro Koizumi, Foreign Minister Toshimitsu Motegi, Finance Minister Satsuki Katayama and Economy Minister Minoru Kiuchi remained in their posts.
The reshuffle is Takaichi’s first since becoming prime minister in October 2025 and replaces 10 of the Cabinet’s 18 ministers. Hiroshi Nakatsuka of coalition partner Japan Innovation Party was given a ministerial position, while Yoshimasa Hayashi was replaced as internal affairs minister.
The government is facing pressure over inflation, fiscal policy and rising bond yields. Takaichi’s plan to reduce the consumption tax on food from 8% to 1% for two years from April 2027 has raised questions about how the resulting revenue shortfall will be financed. The government has also pledged to limit new bond issuance while considering higher defence spending.
The reshuffle also maintains continuity in Japan’s relations with Washington. Tokyo is dealing with US pressure over defence spending, trade and currency policy, while Takaichi is preparing for a strategy review involving emerging military technologies and regional security concerns. She is also seeking a meeting with US President Donald Trump ahead of his planned talks with Chinese President Xi Jinping.
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