With their "Japanese First" slogan, riffing off US President Donald Trump's "America First", they have truly ruffled the feathers of the ruling Liberal Democratic Party (LDP) and its embattled prime minister, Shigeru Ishiba.

The U.S. trade deal will further support improving economic fundamentals in Japan, which underpin our constructive equity positioning on the country.

Sohei Kamiya's Sanseitō Party won 14 seats in Japan's Upper House elections, appealing to young voters with a "Japanese first" platform focused on culture, birth rates and food security.

The U.S. is significantly reliant on the Taiwanese company for advanced chip manufacturing, raising concerns due to its proximity to China.

The deal imposes 15% tariffs on Japanese cars and other goods, one of the more favorable rates. While the start date and other basic elements are still unknown, Treasury Secretary Scott Bessent warned this week that the US would monitor implementation and bump the rate up to 25% if Trump isn’t satisfied.

Japan’s chief trade negotiator says part of a US$550 billion investment package with the United States could be used to back Taiwanese chipmakers if they use Japanese parts or are selling to Japanese customers.