According to the Treasury International Capital (TIC) reporting system, in February, when the Trump administration imposed a 10% tariff on imports from China, China increased its purchases of US Treasury bonds. China raised its holdings in US Treasury bonds from $760.8 billion to $784.3 billion. Japan, another country significantly affected by these tariff measures, also increased its purchases of US Treasury bonds during the same period. Luke Brennan, a market strategist at DRW, explained that this could be a move to safeguard interests: ‘Specifically, Japan and China have a lot to lose if they decide to sell Treasury bonds and make it public.’ This action demonstrates that despite trade tensions, these countries remain committed to maintaining global financial stability.
