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Atomic option in the trade war? Japan threatens to sell American debt

2025-05-06 12:35

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2025-05-06 12:35

One sentence of the Japanese Minister of Finance was enough for global markets to tremble – Tokyo suggests that it can sell some of the American debt as a means of pressure in commercial negotiations. Although the threat was quickly withdrawn, it revealed a delicate balance on which the financial power of the US is based.

Atomic option in the trade war? Japan threatens to sell American debt
Atomic option in the trade war? Japan threatens to sell American debt
/ Chatgpt

The statement of the Japanese Minister of Finance Katsunobu Kato caused a stir in global markets – Japan, the largest foreign owner of American treasury bonds, suggested that he could use the sale of these assets as a tender card in commercial negotiations with the USA. Although Kato quickly withdrew from this declaration, the suggestion itself revealed the fragility of the financial relationship between strategic partners. Experts warn that such a sale could cause chaos on markets – interest rates, dollar weakening and wider destabilization, which would also hit Japan.

The US relies on foreign capital to finance their public debt, which is currently about $ 36 trillion. Tariff tactics used by Donald Trump's administration – including High duties towards China, Great Britain or Canada – increases tension and reduces trust in the American debt market. As a result, these countries are at least theoretically considering using their reserves in treasury bonds as a pressure tool.

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Economists emphasize that such a strategy is risky and resembles a “double -edged sword”. The sale of American debt would mean losses for state funds and central banks, as well as potential reevaluation of national currencies, which would harm export. In the case of Japan, the importance of a military alliance with the USA is also important, especially in the context of tensions in the Asia and Pacific region.

Although the threat remains only a rhetorical service for now, it indicates the increasingly tense relationship between economies addicted to each other in a complex network of global financial connections. According to specialists, the aggressive tariff policy may result in the outflow of capital from the US and the increase in public debt service costs, which will have far -reaching consequences for the entire American economy.

This is not only a warning from Tokyo, but a signal for Washington: the future of American debt does not depend only on the decisions taken in the White House – it is also the result of a delicate balance in the global financial system.

Ed. Jm

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Ashley Davis

I’m Ashley Davis as an editor, I’m committed to upholding the highest standards of integrity and accuracy in every piece we publish. My work is driven by curiosity, a passion for truth, and a belief that journalism plays a crucial role in shaping public discourse. I strive to tell stories that not only inform but also inspire action and conversation.

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