Japanese Prime Minister Shigeru Ishiba plans to announce his resignation by the end of August, the Mainichi newspaper reported on July 23.

According to the Yomiuri daily, Mr Ishiba told his close associates on July 22 evening that he would explain how he would take responsibility for the election loss once a solution was reached on trade negotiations.

But Mr Ishiba has since denied those reports.

Earlier today, US President Donald Trump took to Truth Social to announce what he called a massive new trade deal with Japan, a staggering US$550 billion in Japanese investments into the US and paying a 15% reciprocal tariff.

What does all this mean for Japan’s political stability, its relationship with Washington and the future of Mr Ishiba’s LDP?

On The Big Story, Hongbin Jeong speaks with Dr Craig Mark, Adjunct Lecturer, Faculty of Economics, Hosei University in Tokyo Japan, to find out more.