US EditionAmerica’s trading partners have a massive bazooka in the trade war. They may never use it
- Japan, a longtime US ally and the biggest holder of $1.1 trillion in US Treasuries, briefly threatened to sell its US debt in trade talks in early 2025.
- This threat arose amid tense negotiations and concerns over tariffs, but Japanese officials quickly clarified they are not considering selling Treasuries as leverage.
- Japan’s vast Treasury holdings give it leverage in trade talks, while other major holders like China, the UK, and Canada face similar tariff pressures and also consider their options.
- Experts warn that dumping US debt would cause Treasury rates to spike, raising borrowing costs, destabilizing markets, and ultimately harming Japan’s own investments and currency values.
- Despite the leverage such a move represents, Japan and other allies are unlikely to trigger a major Treasury selloff due to the mutual economic risks involved and ongoing efforts to negotiate trade deals.
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DailyTruthReportForeign 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 Sources33
Leaning Left5Leaning Right6Center12Last UpdatedBias Distribution52% Center
Bias Distribution
- 52% of the sources are Center
52% Center
L 22%
C 52%
R 26%
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