Japan’s Finance Minister Katsunobu Kato made notable comments stating that Japan’s massive US Treasury holdings (the largest of any foreign nation at $1.13 trillion) could potentially be used as a “card” in trade negotiations with the United States.
While Kato didn’t suggest Japan is actively considering selling these holdings, his remarks represent an unusual public acknowledgment of this economic leverage. Financial experts called this “a very serious tactic to discuss publicly” that could impact markets, though initial market reaction was calm. These comments come during ongoing trade negotiations between Japan and the US, with talks expected to intensify in mid-May.