America’s trading partners have a massive bazooka in the trade war. They may never use it
- A longtime U.S. Ally, Japan, recently hinted at using its $1.1 trillion holding of U.S. Treasuries as leverage in trade negotiations in 2025.
- This suggestion followed heightened trade tensions and U.S. Tariffs, but Japan quickly clarified it was not actively considering selling U.S. Debt.
- Experts emphasize that dumping Treasuries would likely backfire on Japan by causing financial losses, destabilizing markets, and raising U.S. Borrowing costs.
- If Japan sold large amounts of U.S. Debt, Treasury rates would spike, disrupting global markets, and investors would react with concern over the $36 trillion U.S. Debt burden.
- The episode exposes the fragile reliance of the U.S. On foreign debt buyers and suggests that while nations consider all options, a large Treasury selloff remains unlikely.
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Foreign Government Threatens to Use $1 Trillion in US Treasury Holdings as Leverage in Trade Negotiations
A Japanese official issued a veiled threat amid trade talks with the Trump administration, then said the threat was merely a hypothetical conversation. As with most foreign countries that do […] The post Foreign Government Threatens to Use $1 Trillion in US Treasury Holdings as Leverage in Trade Negotiations appeared first on The Western Journal.
·Phoenix, United States
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Total News Sources25
Leaning Left4Leaning Right6Center5Last UpdatedBias Distribution40% Right
Bias Distribution
- 40% of the sources lean Right
40% Right
L 27%
C 33%
R 40%
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