Japan Just Dropped a $1.13 Trillion Warning Shot at the U.S.
In a rare public move, Japanโs Finance Minister Katsunobu Kato signaled that the country could use its $1.13 trillion in U.S. Treasury holdings as leverage in ongoing trade tensions.
When asked if Japan might play the debt card during talks with the U.S., Kato didnโt flinch:
"It does exist as a card."
Markets felt the tremor instantly.
This statement isnโt business as usual. Japan has historically avoided even hinting at selling U.S. debt โ but that era might be over. With the U.S. pressing hard on tariffs and trade concessions, Japan is clearly signaling: enough is enough.
Behind the scenes, Japan and the U.S. are clashing over auto imports, energy, and agriculture. Japan might still strike a deal โ but the tone has changed.
As analysts put it:
"You donโt have to use the weapon โ just showing it is enough."
And letโs not forget: China holds even more U.S. debt. If they join in, Americaโs bond market could be in serious trouble.
This isn't just economic diplomacy. Itโs a warning.
Japan isnโt playing nice anymore.
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