Japan’s $1.1 Trillion in U.S. Treasuries: A New Weapon in Economic Warfare
Japan’s $1.13 trillion holdings of U.S. Treasuries have become a focal point in escalating trade tensions with Washington. As the Trump administration advances aggressive tariff policies, Tokyo’s position as America’s largest foreign creditor is now being scrutinized for its strategic potential.
The sheer scale of Japan’s Treasury stake introduces a complex dynamic to ongoing negotiations. Recent tariffs on Japanese exports appear increasingly precarious against the backdrop of this financial interdependence. market analysts suggest these debt holdings could serve as both shield and sword in economic diplomacy.