Japan does not intend to use the US Treasury Department as leverage for customs lectures

Japan does not plan to use the US Treasury holdings as a negotiation tool to combat US tariffs in scheduled consultations between the two governments on April 17th.

“As an ally, we will not intentionally take action against US government bonds, and it certainly isn’t a good idea to cause market disruption,” liberal Democratic policy director Ithunori Onodera said on Sunday.

aPullbackThe US last week saw the longest surge in long-term yields since the pandemic hit in 2020, deepening shelter losses from financial turmoil. Some investors speculated that global reserve managers, including China, may be reassessing their position in US government debt given the impact of US President Donald Trump’s trade policy.

read more:Japan is trying to calm the nerves as tariffs cause market slides 

Japanese negotiators are seeking exemption from mutual tariffs that came into effect on April 9th, while the US is seeking concessions on agricultural products and liquefied natural gas. Japan, a historically close US ally, has been hit at a rate of 24%, but its automotive industry (the cornerstone of the economy) has to pay 25%.

Onodera said Japan should raise the issue of US tariffs to the World Trade Organization. He also highlighted the light letters of local neighbors. Many of them have been hit by some of the highest tariffs in the world, saying Japan will work to strengthen cooperation between Southeast Asian countries associations.

This story was originally introduced Fortune.com