Japan prepared to use its role as America’s largest creditor as leverage in Trump trade talks

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The White House confirmed a report in the Wall Street Journal that automakers won’t face additional tariffs for goods like steel and aluminum.

While the fallout from unloading bonds would undoubtedly be severe for Tokyo, with the yen soaring versus the dollar, the consequences for a U.S.economy dependent on foreign goodwill to underwrite its consumer-driven lifestyle could potentially be far more devastating.

If a bondholder were to dump enough sovereign bonds it could tank their price, causing borrowing costs for a debtor nation like the U.S.to spiral out of control.Already servicing the U.S.national debt is more expensive than funding the military.

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Article Details

Author / Journalist: Christiaan Hetzner

Category: EconomyBusiness

Markets: United StatesJapan

Topics: China Toyota Asia Geopolitics Tariffs and trade Donald Trump Autos

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2025-05-02 @ 12:44:00 (1 days ago)

News Timezone: GMT +8:00

News Source URL: fortune.com

Language: English

Article Length: 699 words

Reading Time: 4 minutes read

Sentences: 4 lines

Sentence Length: 175 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © Fortune

News ID: 28320861

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