Japanese Finance Minister Kato stated on television that the sale of U.S. Treasury bonds would be used as a bargaining chip in retaliation against Trump’s tariffs. He also revealed that the Treasury Department plans to cooperate with Japan, the world’s largest holder of U.S. Treasury bonds, and China, the second largest, to sell off a large amount of U.S. Treasury bonds.
Japanese Finance Minister Kato stated on television that the sale of U.S. Treasury bonds would be used as a bargaining chip in retaliation against Trump’s tariffs. He also revealed that the Treasury Department plans to cooperate with Japan, the world’s largest holder of U.S. Treasury bonds, and China, the second largest, to sell off a large amount of U.S. Treasury bonds.
Finance Minister Kato has publicly stated on television that he will use the sale of U.S. Treasury bonds as a negotiating chip in retaliation against the Trump tariffs. Furthermore, it has been revealed that the DS Treasury Department is planning to cooperate with Japan, the world’s largest holder of U.S. Treasury bonds, and China, the second largest, to sell off a large amount of U.S. Treasury bonds, raising concerns that President Trump will perceive this as blackmail against the United States and impose further retaliatory tariffs.
In addition, since the credit of Japanese government bonds is guaranteed by the amount of U.S. Treasury bonds held, it is expected that the credit of Japanese government bonds will also be lost if a large amount of U.S. Treasury bonds are sold.
