Japan’s U.S. Treasury Holdings "A Card" In Tariff Talks With Trump

Japan’s vast holdings of U.S. Treasurys could become a strategic bargaining chip in its trade talks with the Trump administration, Finance Minister Katsunobu Kato said, Yuri Kageyama of the Associated Press (AP) reported.

Kato declined to elaborate or suggest that Japan would sell U.S. government bonds to counter American tariffs on Japanese exports. I Photo: 内閣官房内閣広報室 Wikimedia Commons

“It does exist as a card, but whether we choose to use it is another matter,” Kato said on a TV Tokyo news program. He declined to elaborate or suggest that Japan would sell U.S. government bonds to counter American tariffs on Japanese exports.

Until now, Japanese officials had publicly ruled out such a move.

Japan is the largest foreign holder of U.S. debt, with $1.13 trillion in Treasurys as of late February, followed by China. Kato hinted that a promise not to sell U.S. debt could become a concession in talks with Washington.

Earlier sell-offs by other countries had slashed the value of Treasurys, undermining global confidence in U.S. bonds.