Japan is not planning to use US Treasury holdings as a negotiating tool to counter American tariffs in talks scheduled between the two governments on April 17.
“As an ally, we will not deliberately take action against US government bonds, and to cause the suspension of the market not definitely not a good idea,” said the head of the liberal Democratic Party policy of the ITSUNORI ONODERA in the public broadcaster NHK on Sunday.
ARetreatFrom the United States, the treasury bonds last week sent long -term returns that have risen significantly since the epidemic that struck 2020, deepening the losses in what is supposed to be a haven of financial turmoil. Some investors speculated that global reserve managers, including China, can re -evaluate their positions in US government debts, given the impact of US President Donald Trump’s policies.
Read more:Japan seeks to calm the nerves as the customs tariff raises a market chip
Japanese negotiators seek to obtain an exemption from the mutual definitions that came into effect on April 9, while the United States is pushing concessions on agricultural products and liquefied natural gas. Historically, a close ally of the United States, Japan was exposed by 24 %, while the auto industry – the cornerstone of its economy – must pay 25 %.
Onodra said that Japan should raise the issue of American definitions with the World Trade Organization. He also highlighted the plight of regional neighbors, which many were shocked by some of the highest definitions in the world, and said that Japan will enhance cooperation between the Association of Southeast Asian countries.
This story was originally shown on Fortune.com
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