TOKYO (AP) — Japanese Prime Minister Shigeru Ishiba, who faced a major defeat in a key election for the smaller of Japan’s two-chamber parliament, said Monday he will stay on to tackle challenges such as rising prices and high U.S. tariffs.

Ishiba’s ruling Liberal Democratic Party and its junior coalition partner Komeito were short three seats to maintain a majority in the 248-seat upper house in Sunday’s vote. The coalition is now a minority in both houses of the Diet, or parliament, though the LDP is still the leading party.

Ishiba said he takes the result seriously but that his priority is to avoid creating a political vacuum and to tackle impending challenges, including the Aug. 1 deadline for a tariff deal with the U.S.

The prime minister said he hopes to reach a mutually beneficial deal and meet U.S. President Donald Trump.