Japan’s Finance Minister Katsunobu Kato has hinted that Tokyo’s significant holdings of US Treasury bonds could be a bargaining chip in its upcoming trade negotiations with Washington. The country’s $1.4 trillion stockpile of US debt, held by a foreign nation, is the largest such holding globally. This move suggests Japan may use its economic leverage to secure favorable trade terms or influence US policy on key issues.
Source: https://www.bloomberg.com/news/articles/2025-05-01/japan-s-kato-says-us-treasury-holdings-could-be-negotiation-card