Japan Braces as Takaichi Begins New Term with Ultra‑Conservative Low‑Tax Agenda

Published: 20 February 2026. The English Chronicle Desk. The English Chronicle Online

Japan is gearing up for a period of political and policy change after Prime Minister Sanae Takaichi was reappointed with a commanding legislative mandate following a landslide election victory for her ruling coalition, giving her government a supermajority in the lower house of the National Diet and the muscle to push through a bold conservative agenda.

Takaichi, who made history as Japan’s first female prime minister when she initially took office in October, sought a fresh public mandate in a snap election held on 8 February, calling for support for her ambitious blueprint of tax cuts, economic reform and a more assertive security posture. With her Liberal Democratic Party (LDP) and its Japan Innovation Party (JIP) coalition partners winning an overwhelming number of seats, she now enters her new term with increased authority to pursue sweeping policy changes.

At the centre of Takaichi’s agenda is a low‑tax economic strategy designed to revive Japan’s economy in the face of persistent inflation, demographic decline and stagnant growth. Her government has pledged a two‑year suspension of the 8 per cent food consumption tax to ease cost‑of‑living pressures, a move aimed at stimulating consumer spending but criticised by economists for adding strain to Japan’s already high public debt.

Beyond fiscal policy, Takaichi’s conservatives are expected to accelerate a right‑ward shift in security and defence, in part by increasing defence spending, easing restrictions on weapons exports, and expanding Japan’s role in regional security — particularly in response to rising tensions with China over Taiwan. She is also poised to pursue revisions to Japan’s pacifist constitution and tighten immigration policies, reflecting her ultra‑conservative vision for Japan’s future.

However, the sweeping mandate comes with challenges. Critics warn that aggressive tax cuts could worsen debt dynamics in the world’s most indebted major economy, while hawkish defence and nationalist policies risk heightening diplomatic tensions with neighbouring countries and atypical strain with Beijing. Japan has already seen a significant drop in Chinese tourism as diplomatic rifts over security issues simmer, underscoring the complexities of Takaichi’s foreign policy direction.

Domestically, there are also social implications to Takaichi’s agenda: proposals such as stricter immigration rules and maintaining traditional imperial succession norms have drawn concern from civil society groups, while markets and financial analysts watch closely how Tokyo balances fiscal stimulus with long‑term economic stability.

As Japan’s parliament reconvenes, Takaichi’s government faces the task of navigating economic, security and social policy reforms that could reshape the nation’s direction at home and abroad, making this new term a defining moment for the country’s ultra‑conservative leadership.

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