Japan threatens to offload its $1 trillion US Treasury holdings if Trump trade talks don’t go well

By: cryptosheadlines|2025/05/02 12:45:01
0
Share
copy
Airdrop Is Live CaryptosHeadlines Media Has Launched Its Native Token CHT. Airdrop Is Live For Everyone, Claim Instant 5000 CHT Tokens Worth Of $50 USDT. Join the Airdrop at the official website, CryptosHeadlinesToken.com Japan just pulled out the sharpest blade it’s got in the drawer — $1.13 trillion in US Treasury bonds. That’s what Finance Minister Katsunobu Kato waved in America’s face on Friday, right on national television.Asked if Japan would ever use its role as the world’s biggest foreign holder of US government debt as a weapon in trade talks with President Donald Trump’s administration, Kato didn’t blink. He said, “It does exist as a card,” and tossed that line like a lit match. “Whether or not we use that card is a different decision.”This wasn’t some offhand comment either. Japan has always avoided even talking about dumping Treasuries. But now, with Trump throwing around “reciprocal” tariffs like candy since April 2, Tokyo’s keeping its options open.That tariff stunt already sent US markets into a tailspin. Treasury yields spiked, bonds got dumped, and traders panicked. After the chaos, Trump paused the tariffs for 90 days, but of course, the damage was already done.Japan uses bond threat to push back on Trump’s tariff warKato’s words landed hours after Ryosei Akazawa, Japan’s top trade negotiator, wrapped up another tense meeting in Washington. He sat down with Scott Bessent, Trump’s Treasury Secretary, and other White House officials.No details were made public, but diplomatic sources say they talked about US car imports, energy, and agriculture deals. The trade surplus with the US is a long-time sore spot, and Trump wants it cut—fast.The Japanese side might consider buying more American gas and farm goods. But that’s not happening without a fight. Kato, who met Bessent personally in the last week of April, is one of the key guys in this whole thing. And he’s clearly had enough.Analysts are calling it what it is: a warning shot. Nicholas Smith, chief Japan strategist at CLSA, said, “This is a street fight. Promising not to use one of your strongest, most brutal weapons would be both naive and reckless. You don’t need to use the weapon—just brandish it.” And that’s exactly what Kato did.It’s not just about Japan either. If China, which also holds a mountain of Treasuries, jumps in with a similar threat, the US bond market is screwed. Between Japan’s stash and China’s, the leverage is real. With Japan leading the charge now, they’ve opened the door to something much bigger.The prime minister of Japan has already called Trump’s trade war a “national crisis.” Kato taking this public shows just how fed up he and his top guys are. Jesper Koll, director at Monex Group, called the move shocking, especially from someone as careful as Kato.“The fact that the usually extremely guarded and diplomatic finance minister spoke up on national TV about what is arguably Japan’s biggest asset in dealing with America confirms the growing confidence of Japan’s elite in their dealings with the US,” Koll said.Negotiations between Akazawa and the Trump team are expected to ramp up through May, with a possible deal on the table by June. But Japan’s now fighting back with sharp elbows. They’re not just asking for “fairness.” They’re saying: Touch us again, and we torch the bond market.Cryptopolitan Academy: Coming Soon – A New Way to Earn Passive Income with DeFi in 2025. Learn MoreSource link

-- Price

--

You may also like

Why Tokenized Stocks Are Booming in 2026 While Crypto Is Still Struggling

Why are tokenized stocks booming while the crypto market struggles? Explore the latest 2026 data, institutional adoption, and what it means for traders.

From Pump.fun to Collector Crypt: Has Solana's income throne changed hands?

The revenue from consumer applications on Solana is no longer solely reliant on meme coin issuance, but is gradually spreading to more consumption scenarios.

Looking at Stripe's ambitions and the future of stablecoins from OUSD

Stripe enters the stablecoin network battle with OUSD, a comprehensive look at the third paradigm evolution of digital dollars and the new infrastructure for global payments in the AI era.

Do you want to buy CRCL?

A detailed breakdown of Circle's business fundamentals and valuation logic: The panic over OUSD and the market correction have triggered a short-term mispricing, presenting an opportunity for left-side positioning and legislative speculation below $60.

Wosh: Inflation has cooled in recent weeks, AI is reshaping the economy, and forward guidance has lost its necessity

Federal Reserve Chairman Waller clearly stated at the ECB forum that the Fed will abandon forward guidance on interest rates, with future decisions relying entirely on real-time economic data. He noted that inflation risks in the U.S. have decreased over the past four weeks, but the ultimate impact ...

The most secretive AI winner

A century-old company that sells toilets and produces MSG has seen its stock price soar by "positioning" core materials for AI chips. This article clarifies the explosive opportunities for domestic substitution of semiconductor materials in the A-share market.

Contents

Popular coins

Latest Crypto News

Read more
iconiconiconiconiconiconicon
Customer Support:@weikecs
Business Cooperation:@weikecs
Quant Trading & MM:bd@weex.com
VIP Program:support@weex.com