WATCH Major G7 Working Lunch With Trump, Meloni, Takaichi And Gulf Leaders

Prime Minister Sanae Takaichi moved closer on July 29 to adopting a sharp temporary cut in Japan’s food sales tax, turning cost-of-living relief into the next major political test for her government as markets remained uneasy over the weak yen, rising bond yields and the administration’s expansionary fiscal agenda.

Prime Minister Sanae Takaichi’s government moved on July 28 to reassure investors that it respects the Bank of Japan’s independence, as Finance Minister Satsuki Katayama said relations between the government and the central bank remain smooth despite market concern over rising bond yields, yen weakness and the administration’s growth-oriented fiscal agenda.

Prime Minister Sanae Takaichi entered the final week of July facing the sharpest political test of her administration so far, as a fall in public support exposed growing unease over the weak yen, rising living costs and doubts about whether her growth strategy can reassure both households and financial markets.

Artificial intelligence could bring changes equal to or greater than the Industrial Revolution, reshaping the role of government, society and policymaking, Mirai party leader Takahiro Anno said in an interview broadcast on July 26.

The Trump administration imposed new additional tariffs on Japan and 59 other countries and regions at 1:01 p.m. Japan time, shortly after President Donald Trump praised Shohei Ohtani and Yoshinobu Yamamoto during a White House ceremony honoring the Los Angeles Dodgers.

Japan's parliament enacted legislation on July 24 to establish a secondary capital capable of maintaining legislative and administrative functions if Tokyo is struck by a major disaster, while also seeking to reduce the excessive concentration of population and economic activity in the capital.

Prime Minister Sanae Takaichi entered the final full day of the extended Diet session on July 24 facing pressure from both parliament and financial markets, as opposition parties prepared to question her in Budget Committee deliberations while the ruling bloc sought to complete legislation central to its coalition with the Japan Innovation Party.

A Russian military intelligence officer accused of posing as an airline employee in Tokyo while overseeing the smuggling of high-tech equipment needed to sustain Russia's invasion of Ukraine left Japan after his activities were reported by The New York Times.