News

Japan’s first female prime minister, Sanae Takaichi, ushers in a new era of economic and political strategy, presenting both opportunities and challenges for U.S. companies.

Why it matters: Takaichi is expected to take an assertive approach to national security, strategic industries, and economic policy.

• “For U.S. companies operating in or with Japan, it will be important to stay agile, informed, and engaged, and to leverage strategic openings while preparing for policy shifts, regulatory changes, and geopolitical uncertainties,” writes Tomoko Hosaka Mullaney, Executive Director of the U.S.-Japan Business Council.

Key takeaways:

• Strategic alignment: Takaichi aims to strengthen U.S.-Japan ties, backing a $550 billion Japanese investment in key U.S. sectors including semiconductors, energy, and defense.

• Defense opportunities: Her coalition supports increased defense spending, relaxed arms export rules, and constitutional reform, creating new avenues for U.S.-Japan defense co-production and technology sharing.
• Economic security: Takaichi is expected to focus on strategic autonomy in critical sectors like semiconductors and pharmaceuticals, which could reshape trade dynamics.
• Energy policy: Plans to restart nuclear reactors and invest in next-gen technologies like fusion and solar present opportunities for U.S. firms in energy innovation.

Driving the news: President Donald Trump met Prime Minister Takaichi on Monday as part of his trip to Asia. During the visit U.S. Commerce Secretary Howard Lutnick announced that Japan would commit up to $490 billion in investments in the U.S.

Dig deeper: The Call: Is Japan Ready for President Trump’s Asia Tour?