The head of the global trade watchdog says global free trade is facing a “crisis” as U.S. President Donald Trump disrupts world commerce with his fast-changing tariffs and other policies

Japan has just made a powerful and bold statement that sent shockwaves through the global financial markets. The country’s finance minister, Katsunobu Kato, publicly warned that Japan could use its massive holdings in U.

No country holds more provable Treasury debt than Japan with roughly $1.1 trillion, equivalent to a quarter of its entire economy.

Japan’s finance minister says the nation’s massive holdings of U.S. Treasurys can be “a card on the table” in negotiations over tariffs with the Trump administration.

The Bank of Japan predicted growth of just 0.5 percent, cutting its previous forecast in half, and decided against another hike in interest rates.

The beleaguered Japanese giant said on Tuesday it would cut 20,000 jobs and close seven factories by 2027 as it slips deeper into crisis.

Among all U.S. allies being wooed by Beijing in its tariff stare-down with Washington, Japan stands out as a peculiar case.

Asian markets broke down on Tuesday just as fast as they had rallied on Monday. Traders across the region walked away from early gains after fresh fears over president Donald Trump’s trade decisions began creeping in.