Japanese Prime Minister Sanae Takaichi achieved a historic victory on Monday as her coalition secured a supermajority in the lower house. The win strengthens her mandate to push through tax cuts and bolster national security policies.

Takaichi, Japan’s first female prime minister and self-styled “Iron Lady” inspired by Margaret Thatcher, led the Liberal Democratic Party (LDP) to 316 seats out of 465, the party’s best-ever result. With coalition partner Japan Innovation Party (Ishin), her bloc controls 352 seats, giving her a two-thirds supermajority.

The decisive win allows Takaichi to override the upper house where her coalition lacks a majority, smoothing the path for her ambitious legislative agenda.

The 64-year-old called a rare winter snap election to capitalize on her strong personal approval ratings since taking office in October. Despite record snowfall in many regions, voters braved harsh conditions, highlighting the public’s engagement with the election.

Takaichi told reporters the election focused on “major policy shifts — particularly economic, fiscal, and security policies” and emphasized that public support obliges her to implement them.

Economic and market reactions

The prime minister has pledged to suspend the 8% sales tax on food to ease household burdens amid rising prices. While popular with voters, investors worry about Japan’s record-high national debt and how the government will finance the plan.

Chris Scicluna, head of research at Daiwa Capital Markets Europe, said, “Her plans for the cut in the consumption tax leave open big question marks about funding and how she’s going to make the arithmetic add up.”

Business leaders, however, welcomed the election as a step toward political stability. Yoshinobu Tsutsui, head of Japan’s top business lobby Keidanren, said the win could help Japan achieve “sustainable and strong growth.”

Security and geopolitical implications

Takaichi has pursued a strong security agenda, emphasizing measures to counter China. Weeks after assuming office, she publicly discussed Japan’s potential response to a Chinese attack on Taiwan, triggering the largest dispute with Beijing in over a decade.

China has criticized her policies, while Taiwan’s President Lai Ching-te congratulated Takaichi, expressing hope for a “more prosperous and secure future for Japan and its partners in the region.”

Defense Minister Shinjiro Koizumi said Japan intends to strengthen defense while maintaining dialogue with China. Analysts note that Takaichi’s victory signals a firm stance in Tokyo, challenging Beijing’s attempts to influence Japan.

Takaichi has cultivated a strong public image with younger voters, sparking a “sanakatsu” craze — dubbed “Sanae-mania” — where her signature pink pen and handbag have become highly sought-after. Her direct, hardworking image has helped her consolidate support and restore the LDP’s dominance after recent electoral setbacks.