Japan Waves $1 Trillion Threat in Trump Trade Talks

Japan just played its biggest card — threatening to offload its $1.13 trillion in U.S. Treasury bonds. Finance Minister Katsunobu Kato, on national TV, confirmed it’s “a card” Japan could use if trade talks with Trump’s team go south.

This bold move comes amid rising tensions over U.S. tariffs and demands to cut Japan’s trade surplus. Talks in Washington remain tense, and Japan’s warning signals it's ready to hit back — hard. Analysts call it a warning shot. If Japan, and possibly China, dump Treasuries, the U.S. bond market could face serious turmoil.

Tokyo’s message: Push too far, and we crash your debt game.