Japanese Finance Minister Katsunobu Kato holds a press conference following a meeting of finance chiefs from the Association of Southeast Asian Nations plus Japan, China and South Korea in Milan on May 4, 2025. (Kyodo)
MILAN (Kyodo) — Finance Minister Katsunobu Kato said Sunday that Japan is not thinking of using its holdings of U.S. Treasurys as a bargaining chip in ongoing trade negotiations with Washington.
Kato, who oversees bilateral talks on currency issues, made the remarks at a news conference in Milan, just days after suggesting Japan could use its U.S. bond holdings as a card in negotiations. Japan, along with China, is a major holder of U.S. Treasurys.
The finance minister made the comment in a TV program last week after U.S. government bonds, equities and the dollar faced sell-offs in financial markets in early April amid growing concern about President Donald Trump’s aggressive tariff policies.
Japan is among the first nations with which the United States has begun negotiations on its higher import tariffs.
Ryosei Akazawa, Japan s top negotiator, visited Washington last week for the second round of talks with U.S. officials including Treasury Secretary Scott Bessent.
AloJapan.com