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Containers on a cargo ship are seen at an industrial port in Tokyo, Japan April 3, 2025.

REUTERS/Kim Kyung-Hoon

Beijing tries to woo an uninterested Tokyo over joint tariff fight

Chinese Premiere Li Qiang sent Japanese Prime Minister Shigeru Ishiba a letter asking that they “fight protectionism together,” according to local reports Tuesday, as both countries face potentially disastrous US tariffs.

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Paige Fusco & Ari Winkleman / GZERO Media

The Graphic Truth: The foreigners who hold US debt

The US is the world’s biggest debtor, with more than $35 trillion of securities outstanding.

About a quarter of that is held by foreign investors, a detail which has drawn considerable attention since Donald Trump began walloping the world with tariffs to rebalance US trade ties and military alliances. That’s because if countries upset – or merely uneasy – about Trump’s policies sell those securities in response, the debt servicing costs for the US rise. This is no small matter on $35 trillion worth of paper.

In fact, one widely held explanation for Trump’s abrupt suspension of the “Liberation Day” tariffs on April 9 was that wary bond investors had begun to sell US Treasuries: In the week of April 11, yields on 10-year US treasuries saw their biggest leap in a quarter of a century, a sign that creditors were dropping US sovereign debt fast.

Could countries weaponize US debt more directly? China, Trump’s biggest trade war target, is the second largest foreign US creditor, officially holding more than $750 billion.

A selloff could be devastating. But analysts say it would be hard to find enough buyers for a sale that is both swift and large enough to catch the US off guard.

And even if it were possible, a seller would risk their own financial security as well global economic health by kneecapping the US. In other words: It would be, in financial terms, the nuclear option.

The graphic above looks at which countries hold the most US sovereign debt. Note that the last official data precede Liberation Day and that they depend on official reporting. Some countries may hold more than what is listed here via third parties.

Chinese President Xi Jinping meets with Cambodia's Prime Minister Hun Manet (not pictured) at the Peace Palace in Phnom Penh, Cambodia, April 17, 2025.

Agence Kampuchea Press/Handout via REUTERS

China warns world against harmful US trade deals

China warned Monday that it would “take countermeasures” against countries that try to curry favor with the US by hurting Beijing. More than 70 countries have reached out to Washington in hopes of brokering deals to avoid eye-watering tariffs, and US President Donald Trump said last week that Latin American countries should “maybe” choose between trade with China and America.
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Two DHL delivery vans deliver parcels in Maximilianstrasse in Munich, Germany, on Feb. 20, 2025.

Michael Nguyen/NurPhoto via Reuters

Companies respond to Trump’s trade crackdown

The ripple effects of US President Donald Trump’s tariff policies continue to impact global supply chains. On Saturday, transport company DHL announced it would suspend international shipments over $800 to American consumers, citing that new tariff rules had overwhelmed its processing systems. Automaker Ford said it was “adjusting” its exports of vehicles like the F-150 Raptor, Lincoln Navigator, and Mustang to China, due to the impact of tariffs. And China’s Xiamen Airline reportedly returned a Boeing 737 MAX, freshly painted in company colors – the latest casualty of that country’s ongoing trade war with the US.

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US President Donald Trump attends a Cabinet meeting at the White House in Washington, D.C., on April 10, 2025.

REUTERS/Nathan Howard

China strikes back at the US with massive tariffs of its own

Wednesday’s tariff respite is firmly in the rearview mirror, as China announced on Friday it was raising its duty on US imports to an astronomical 125%, taking effect Saturday. The announcement came less than 24 hours after the White House clarified that the new levy on Chinese imports would be 145%.

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President Donald Trump speaks as he signs executive orders and proclamations in the Oval Office at the White House on April 9, 2025.

REUTERS/Nathan Howard

The Truth will set tariffs free

With stock markets plunging and US Treasury yields reaching new heights, US President Donald Trump finally reneged on parts of his widescale tariff plan on Wednesday, declaring a 90-day pause to the far-reaching “reciprocal” levies that he introduced just one week ago while leaving a 10% across-the-board duty in place. He also escalated the already-burgeoning trade war with China by increasing the tariff on their imports to 125%.

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EU and Chinese flags in an illustration.

REUTERS/Dado Ruvic/Illustration

The EU extends a hand toward China

European leaders have much to worry about when it comes to trade and economic growth. In March, Donald Trump imposed 25% tariffs on steel, aluminum, and cars coming from Europe. Last week, he added a 20% tariff on virtually everything else that Europe exports to the US. On Wednesday, the EU responded by announcing tariffs on a broad range of US-exported products that could affect about $23 billion worth of goods. Then, later on Wednesday, Trump suddenly included the EU among those who would see tariff rates fall back to 10%. The whiplash from Washington continues.

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US President Donald Trump attends a bilateral meeting with China's President Xi Jinping during the G20 leaders summit in Osaka, Japan, June 29, 2019.

REUTERS/Kevin Lamarque/File Photo

China vows retaliation as US tariffs take effect

With the Trump administration’s reciprocal tariffs taking effect on Wednesday, the US’s largest trading partner, China, has signaled that it is not backing down from a trade war. Beijing has promised to “fight to the end” after Donald Trump imposed 104% levies on China. Sure enough, the Mainland Kingdom announced on Wednesday that it would impose an additional 50% tariff on US imports, matching Trump’s latest hike.

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