Japan says US Treasury farms could be “card” in commercial conversations

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Japan’s Minister of Finance has publicly identified the United States Treasury Participations in more than $ 1 in the country as a “card” in its commercial negotiations with the Trump administration, in a rare teeth bar for the nearest ally in America in Asia.

Speaking during a television interview on Friday, Katsunobu Kato was asked if Japan He would use his traditional stance as non -vendors of treasures as a tool in commercial conversations with Washington.

“It exists as a card,” Kato said, adding that “whether or not we use this card is a different decision.”

Japanese headlines, including government, have 1.13 TN of dollars Treasurythe greatest extent of the foreign nation.

There is no suggestion that Tokyo takes into account the sales of official Treasury holdings. But traders said that even reference to an action as a “card” could add to volatility in a North -Americans who have been violently since April 2, when Donald Trump announced the “reciprocal” rates of United States commercial members. The treasury dragged on a wholesale sale of American assets before recovering some of its losses after Trump stopped the rates for 90 days.

Analysts said that Kato’s comments were a natural reaction to the economic threat of Trump’s trade war, which the Japan Prime Minister has described as a “national crisis”.

“This is a street struggle: promising not to use one of your strongest and brutal weapons would be naive and reckless,” said Nicholas Smith, a CLSA Japan strategist. “You don’t need to use the weapon: only the brand.”

The state of Japan as the largest head of the treasure market abroad could be even stronger as a negotiation tool if China decides to arm its own treasure farms in its commercial clash with the United States.

Kato’s comments, which break with a long precautionary habit on the subject, came a few hours after the last round of talks in Washington between Japan’s leading negotiator Ryosei Akazawa and his counterparts in the Trump administration, including Treasure Secretary Scott Bessent.

Conversations are expected to be intensified in May, with Akazawa, which indicates that a trade agreement may be possible in June. Diplomatic sources said that the meeting had included discussion on the decline in supposed non-tariff barriers to American car imports, as well as measures that Japan could take to reduce its great commercial surplus with the United States by expanding energy purchases and agricultural products.

“The fact that the Minister of Diplomatic Finance and very extremely monitoring and diplomatic spoke on national television about what is probably the greatest asset in Japan in dealing with America confirms the growing confidence of Japan elite in his treatment with the United States,” said Jesper Koll, director of the Broken Monex Group online.

Kato has participated directly in negotiations with the United States and has had bilateral talks with Bessent in the last week of April. The Minister of Finance came from this meeting without offering details on specific demands on the United States side.