TOKYO — Japan’s Prime Minister Shigeru Ishiba faces an increasingly uphill battle in Sunday’s upper house election, and a loss could worsen political instability at a time of daunting challenges, such as rising prices and high U.S. tariffs.

Japan’s Prime Minister Shigeru Ishiba faces a critical test in Sunday’s upper house election. A loss could deepen political instability as his government struggles with rising prices, U.S.

U.S. Treasury Secretary Scott Bessent told Japanese Prime Minister Shigeru Ishiba that their countries can reach a "good agreement" on tariffs, Ishiba said on Friday after meeting Bessent in Tokyo. No specific terms were discussed,