Takaichi said she would step down immediately if her ruling coalition fails to secure a majority in the upcoming snap election

Current Japanese Prime Minister Sanae Takaichi said she would step down immediately if her ruling coalition fails to secure a majority in the House of Representatives, calling the snap election a test of voter approval for her new alliance between the Liberal Democratic Party and the Japan Innovation Party.

She described the coalition as a major political realignment and said she is prepared to accept whatever verdict voters deliver.

Takaichi also pledged to eliminate the consumption tax on food items temporarily, targeting household budgets crushed by rising prices.

The tax cut proposal has spooked financial markets and raised concerns about Japan's already massive debt load, weakening the yen and triggering a selloff in government bonds.

Analysts believe the LDP is well-positioned to perform strongly, but the party lost its parliamentary majority in 2024 following political funding scandals.

Even if Takaichi wins big, she will still need opposition support to pass legislation in the upper house.

Her resignation threat is a high stakes gamble designed to rally voters and frame the election as a mandate for bold economic action.

Critics warn the financial risks could backfire, but Takaichi is betting voters care more about cheaper groceries than bond market jitters.

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