Japan Threatens $1 Trillion US Treasury Holdings as Trade Talks With Trump Stall

Japan recently withdrew $1.13 trillion in US Treasury bonds as a sign of their displeasure with Trump’s recent tariffs. The move follows tense trade talks between Japan’s representatives and US officials, where the focus was on issues like US car imports, energy, and agriculture. These conversations have centered around reducing the US-Japan trade surplus, which is proving to be an obstacle for Trump. 70% of Japan’s holdings are in US Treasury bonds and this move came after a period of market volatility triggered by Trump’s tariffs on April 2nd.