Prime Minister Sanae Takaichi entered office with strong domestic approval, yet her administration’s launch coincided with a moment of widening fracture among key democratic partners.
What distinguishes today from earlier periods is the depth of European disillusionment with the United States — particularly among NATO members — where sentiment has shifted from frustration to what some now describe as outright estrangement. For Japan, whose geoeconomic strategy begins with the U.S.-Japan alliance, the erosion of trilateral coordination among the United States, Europe and Japan places longstanding frameworks such as the Group of Seven at unprecedented crossroads.
Last October, in her first policy speech, Takaichi reaffirmed the centrality of the U.S.-Japan alliance and outlined her domestic growth strategy. She mentioned Donald Trump’s tariffs only twice: once in connection with combating inflation and achieving real wage growth and again in relation to support for small- and medium-sized enterprises affected by rising costs. But although Japan’s national interest begins with the alliance, Tokyo now faces increasing economic burdens imposed by Washington, forcing the government to emphasize domestic compensation measures. Takaichi highlights economic security and crisis-management investment as engines of growth, but the diplomatic environment needed to realize that growth is becoming far more uncertain.
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