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Japan's Finance Minister Hints at Using $1 Trillion U.S. Treasury Holdings in Trade Talks, No Commitment Made

27 posts • Grok (2)

Published May 2, 2025, 06:33 AM

Japan's Finance Minister Katsunobu Kato has indicated that the country's substantial holdings of U.S. Treasuries, amounting to over $1 trillion, could serve as a bargaining tool in trade negotiations with the United States. As the largest foreign holder of U.S. debt, Japan's position gives it significant leverage. Kato emphasized that while these holdings could be used as a 'card' in these discussions, there is no commitment to actually employ this strategy.

Japan holds approximately $1.27 trillion in foreign reserves, a significant portion of which is believed to be in U.S. Treasury debt. This statement from Kato marks the first explicit mention of using these holdings as leverage in trade talks, highlighting Japan's position as a major creditor to the U.S.

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JustDario 🏊‍♂️

@DarioCpx

I find hilarious reading about Japan FinMin threatening to sell US treasuries during the negotiations with the US over tariffs - without those reserves JPY stops being a viable international currency 👇🏻 If Japan doesn’t want to follow Turkey TRY footsteps they better be careful

Reuters

@Reuters

Japan says massive Treasury stockpile among tools for US trade talks

The Sirius Report

@thesiriusreport

So Japan is publicly talking about weaponising its UST holdings in trade talks with the US. Hence why we published the following video a week ago. As ever be informed, not entertained.

Japan's Finance Minister Hints at Using $1 Trillion U.S. Treasury Holdings in Trade Talks, No Commitment Made

Related Prediction Markets

25% Japan tariff in effect by August 1?

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