TOKYO — Japan’s massive holdings of U.S. Treasurys can be “a card on the table” in negotiations over tariffs with the Trump administration, Finance Minister Katsunobu Kato said Friday.
“It does exist as a card, but I think whether we choose to use it or not would be a separate decision,” Kato said during a news show on national broadcaster TV Tokyo.
Kato did not elaborate and he did not say Japan would step up sales of its holdings of U.S. government bonds as part of its talks over President Donald Trump’s tariffs on exports from Japan.
Earlier, Japanese officials including Kato had ruled out such an option.
Japan is the largest foreign holder of U.S. government debt, at $1.13 trillion as of late February. China, also at odds with the Trump administration over trade and tariffs, is the second largest foreign investor in Treasurys.
Kato stressed that various factors would be on the negotiating table with Trump, implying…
