Japan’s finance minister has said that the country has no plans to use its U.S. Treasury holdings as a weapon in trade talks with the United States. This comes after earlier comments had raised concerns that Japan might use its $1 trillion worth of U.S. government bonds as a bargaining chip.
The clarification was made on Sunday to ease tensions. Japan is one of the largest foreign holders of U.S. Treasuries, and any suggestion of selling them can cause nervousness in global financial markets.
U.S. and Japan Start New Trade Talks
Top U.S. and Japanese officials recently met in Washington. After the meeting, the U.S. Treasury Department said both sides have agreed to begin working-level consultations. These talks are meant to build on previous discussions and help resolve trade issues.
U.S. Proposes New Trade Deal Terms
According to a report by Nikkei News, U.S. trade officials have offered a plan for a new trade agreement. The U.S. wants to keep current tariffs (import taxes) on key Japanese exports like cars, steel, and aluminum. These tariffs are a major point of disagreement.
Japan Strongly Opposes U.S. Tariff Plan
Japan’s negotiation team disagrees with the U.S. proposal. They say that without discussing tariffs on these major industries, it will be difficult to reduce the U.S. trade deficit with Japan.
The trade deficit means the U.S. buys more from Japan than it sells. Japan believes that removing or lowering tariffs on cars, steel, and aluminum is necessary for fair and meaningful talks.
Be First to Comment