Japanese Finance Minister Katsunobu Kato stated that Japan will not use its holdings of U.S. Treasury as leverage in response to President Donald Trump's imposition of tariffs on Japanese imports. Kato emphasized that the management of these holdings is solely for possible future exchange-rate interventions, not for diplomatic negotiations. In light of suggestions to sell U.S. Treasury holdings as a countermeasure to tariffs, Kato highlighted that Japan's foreign reserves are not deemed excessively large and that there is no fixed criteria for determining an ideal reserve size. Kato cautioned against liquidating foreign reserves, noting that such actions would involve selling foreign assets for yen, tantamount to currency intervention, irrespective of the scale of the operation. With Japan's foreign reserves estimated at around $1.27 trillion, with a significant portion believed to be in U.S. Treasury securities, Kato stressed the prudence in approaching any decisions regarding these reserves.