Japan ready to use US treasury holdings as negotiation card in tariff talks

The Japanese government is prepared to use its position as the world's largest holder of US government bonds as a strong bargaining chip in negotiations with the United States over tariffs.

Japanese Finance Minister Katsunobu Kato revealed this intention during a national television program, warning that selling off these bonds could deliver a significant blow to US finances, Caliber.Az reports citing Bloomberg.

Minister Kato said that the country’s US Treasury holdings are a card in its trade negotiations with the US, in response to a question asking whether Japan’s stance of not easily selling the holdings could be seen as a negotiation tool.

“It does exist as a card,” he confirmed, noting that "it was a different decision" whether Tokyo was going to make use of it.

Japan currently holds over $1 trillion in US Treasury securities, making it the largest foreign holder, followed by China with $759 billion. Earlier in April, after President Trump announced increased import tariffs on goods from several countries, including Japan, a sell-off of US bonds triggered turmoil in financial markets and sparked speculation that Tokyo may have been behind the move.

By Nazrin Sadigova