Trump Congratulates Japan on Electing Its First Female Prime Minister, Sanae Takaichi: 'Great Person of Wisdom and Strength!'

US President Donald Trump has congratulated Sanae Takaichi, Japan's first female prime minister, calling her 'a highly respected person of great wisdom and strength.'

In a post on Truth Social, Trump hailed her election as 'tremendous news for the incredible people of Japan,' though he notably did not mention her by name.

Takaichi, a conservative heavyweight within Japan's ruling Liberal Democratic Party (LDP), officially assumes office this week following her decisive victory in the party's leadership race.

Takaichi's Rise and Political Agenda

Takaichi, 64, secured 54.25% of the votes in the October 4 runoff against former Agriculture Minister Shinjirō Koizumi, succeeding Shigeru Ishiba after his coalition lost its parliamentary majority. Her elevation marks a historic moment in Japanese politics, as the first woman to hold the post of Prime Minister in a nation long dominated by male leadership.

Financial markets reacted swiftly. The so-called 'Takaichi trade', anticipating fiscal stimulus and deregulation, boosted the Nikkei 225 index in early trading. However, economists warn that her proposed pro-growth spending could exacerbate Japan's already substantial public debt and increase pressure on long-term bond yields.

Known for her staunch conservatism, Takaichi supports revising Japan's pacifist constitution, expanding defence spending, and maintaining a cautious stance on social reforms such as same-sex marriage and separate surnames for married couples.

Early Cabinet Signals and Policy Outlook

Sources close to the LDP indicate that Takaichi plans to appoint Toshimitsu Motegi as Foreign Minister and Minoru Kihara as Chief Cabinet Secretary, both veteran figures with strong diplomatic experience. If confirmed, their inclusion suggests an attempt to balance continuity with her nationalist policy framework.

Takaichi's government is expected to emphasise economic stimulus, defence modernisation, and technological innovation, including the expansion of Japan's semiconductor and AI sectors. Her economic philosophy mirrors elements of 'Abenomics', though she favours a stronger state role in industrial investment.

Her economic plans, based on stimulus, tax cuts, and aggressive fiscal expansion, may delay interest rate hikes by the Bank of Japan. Analysts already see her victory as reducing the likelihood of a rate rise in October.

Trump's Message and the US–Japan Alliance

Trump's public endorsement carries symbolic weight. The two share a reputation for assertive nationalism and economic protectionism. His Truth Social post followed recent reports of a US–Japan tariff agreement reducing trade barriers and committing Japanese funding to American infrastructure investment — an arrangement dubbed by analysts as the 'Trump trade'.

Takaichi has pledged to honour existing US agreements and strengthen security ties amid growing regional tensions with China and North Korea. Analysts view Trump's remarks as a signal of continued strategic cooperation, especially on Indo-Pacific security and trade realignment.

Obstacles at Home and Abroad

Despite her momentum, Takaichi inherits a fractured political landscape. The LDP lacks hold a majority in both houses, forcing her to rely on coalition-building to advance her agenda.

Her ambitious fiscal stimulus plan, which combines tax cuts, public investment, and monetary easing, may prolong the Bank of Japan's ultra-loose policy, delaying any rate hikes. However, critics fear that it could fuel inflation and further weaken the yen, which is already near multi-decade lows.

Internationally, her visits to the Yasukuni Shrine and push for constitutional revision risk aggravating ties with China and South Korea, though she remains committed to Japan's alliance with Washington.