Japan’s finance minister calls US Treasury holdings ‘a card’ in tariff talks with Trump
- On Friday in Tokyo, Japan's Finance Minister Katsunobu Kato stated Japan's $1.13 trillion U.S. Treasury holdings could be a 'card on the table' in trade negotiations with the U.S.
- This statement marks a shift from Kato's remarks weeks earlier when he ruled out using Treasury holdings as leverage despite escalating U.S. Tariffs and trade tensions.
- Japan holds the world’s largest amount of U.S. Government debt to ensure liquidity for yen interventions, while U.S. Treasury yields have risen alongside market declines amid tariff pressures.
- Kato noted that deciding to employ that option remains uncertain, as analysts suggest that disruptions in the bond market could impact the negotiation strategy.
- The potential use of Treasury holdings suggests Japan might gain leverage in tariff talks, possibly reassuring Washington to avoid selling debt while protecting weakening Japanese growth.
46 Articles
46 Articles
Finance Minister: All Cards Should Be on Table in Tariff Negotitations; Japan Largest Foreign Holder of U.S. Bonds
Finance Minister Katsunobu Kato said that Japan should conduct tariff negotiations with the United States with all potential cards on the table, during a TV Tokyo program that aired on Friday.
Japan says massive Treasury stockpile among tools for U.S. trade talks
Japan could use its $1 trillion-plus holdings of U.S. Treasuries as a card in trade talks with Washington, its finance minister said on Friday, raising explicitly for the first time its leverage as a massive creditor to the United States. While Finance Minister Katsunobu Kato did not threaten to sell…
Japan’s finance minister says U.S. Treasury holdings could be ‘a card’ in Trump tariff talks
Japan’s massive holdings of U.S. Treasurys can be “a card on the table” in negotiations over tariffs with the Trump administration, Finance Minister Katsunobu Kato said Friday. “It does exist as a card, but I think whether we choose to use it or not would be a separate decision,” Kato said during a news show on national broadcaster TV Tokyo. Kato did not elaborate and he did not say Japan would step up sales of its holdings of U.S. government bo…
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