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Japan Warns U.S.: Don’t Push Us, or We’ll Sell Your Debt
Japan has just reminded the United States that it holds a powerful card in their trade talks — more than $1.1 trillion in U.S. government bonds.
On national TV, Japan’s Finance Minister Katsunobu Kato was asked if they might use these bonds to pressure the U.S. in trade talks. His answer? “It does exist as a card.” In other words, Japan could use it if needed.
This is a big deal. Japan usually avoids even talking about selling U.S. bonds, but now things have changed. Why? Because President Trump has been pushing new tariffs — extra taxes on Japanese goods — and Japan isn’t happy about it.
Japan might agree to buy more American gas and food — but they want fair treatment in return. And if the U.S. keeps pushing, Japan might push back hard.
Experts say this was a clear warning. One analyst, Nicholas Smith, said it’s like a fight in the street — showing your strongest weapon, even if you don’t use it, sends a message. That’s what Japan just did.
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And there’s more at stake. China also owns a huge amount of U.S. debt. If they join Japan in threatening to sell, the U.S. bond market could be in real trouble.
Japan’s Prime Minister has already called Trump’s trade actions a “national crisis.” And Kato, who is usually very careful with his words, speaking so openly shows just how serious Japan is.
