Japan's Diplomatic Card: U.S. Treasuries in Trade Talks

Japan's finance minister suggests, for the first time, using the country's massive U.S. Treasury holdings as leverage in trade talks with the U.S. This move comes amid heightened trade tensions following tariffs imposed by the Trump administration. Japan's suggestion underscores the potential use of economic assets as negotiation tools.


Devdiscourse News Desk | Updated: 02-05-2025 09:12 IST | Created: 02-05-2025 09:12 IST
Japan's Diplomatic Card: U.S. Treasuries in Trade Talks
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In an unprecedented move, Japan's finance minister has highlighted the potential use of the country's extensive U.S. Treasury holdings as leverage in trade negotiations with the United States.

This comes amid escalating tensions after U.S. President Trump imposed tariffs on several trading partners, including Japan.

The finance minister emphasized that while Japan holds the largest amount of U.S. Treasuries globally, using them as a bargaining tool could offer strategic advantages in ongoing economic discussions with Washington.

(With inputs from agencies.)

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