Tokyo, May 2 -- Japan's Finance Minister Katsunobu Kato has hinted that the country's substantial holdings of US Treasury could serve as leverage in ongoing tariff negotiations with the Trump administration.

"It does exist as a card, but I think whether we choose to use it or not would be a separate decision," Kato stated during a televised interview on national broadcaster TV Tokyo on Friday, AP reports.

While Kato refrained from providing further details or suggesting Japan intends to sell its holdings, the remark signals a potential shift in Japan's strategy as tensions over tariffs grow.

Previously, Kato and other Japanese officials had dismissed the possibility of using Treasury holdings as a negotiation tool.

Japan is currently ...