Japan Has Just Issued a $1.13 Trillion Warning to the U.S.
In a rare public move, Japan's Finance Minister, Katsunobu Kato, signaled that the country could use its $1.13 trillion in U.S. Treasury bonds as leverage in the ongoing trade tensions.
When asked if Japan could use the debt card during negotiations with the U.S., Kato did not hesitate:
"It really exists as a card."
Markets felt the tremor instantly.
This statement is not business as usual. Japan has historically avoided even hinting at selling U.S. debt — but that era may be over. With the U.S. strongly pushing for tariffs and trade concessions, Japan is clearly signaling: enough is enough.
Behind the scenes, Japan and the U.S. are at odds over automobile, energy, and agricultural imports. Japan may still strike a deal — but the tone has changed.
As analysts put it:
"You don't need to use the weapon — just showing it is enough."
And let's not forget: China holds even more U.S. debt. If they join in, the U.S. bond market could be in serious trouble.
This is not just economic diplomacy. It’s a warning.
Japan is no longer being kinder.