Data released through June 2026 show both the central role of US Treasury securities in the global financial system and the growing vulnerabilities of Washington’s fiscal strategy. According to data from the US Treasury Department’s Treasury International Capital system, total Treasury securities held by foreign investors have reached $9.29 trillion, up 2.3% from a year earlier. This figure is not the same as the total US federal debt; rather, it represents the amount of Treasury securities held by foreign investors and underscores Washington’s significant reliance on global capital.
Japan, with $1.1167 trillion, remains the largest foreign holder, although its holdings have declined by 3.3%. The United Kingdom ranks second with $939.9 billion, up 9.8%. China ranks third with $633.4 billion, but its 13.4% decline is the most significant signal among the major powers. The trend is consistent with Beijing reducing its dependence on dollar-denominated assets and diversifying its reserves.
Belgium holds $482.5 billion, up 12.1%; Canada holds $459.6 billion, up 4.7%; the Cayman Islands hold $453.1 billion, up 2.7%; and Luxembourg holds $434.2 billion, up 7.6%. France holds $389.9 billion, up 4.3%; Ireland holds $353.5 billion, up 13.9%; and Taiwan holds $302.5 billion, down 1.5%.
Switzerland holds $284.9 billion, down 5.2%; Singapore holds $284.4 billion, up 12.1%; Hong Kong holds $255.8 billion, up 5.7%; and Norway holds $203.2 billion, up 4.1% in US Treasury securities.
India, with $186.4 billion, recorded an 18% decline, while Brazil, with $168.4 billion, saw its holdings fall 21.8%. Saudi Arabia holds $142.5 billion, up 9.2%; South Korea holds $134.7 billion, up 6.4%; the United Arab Emirates holds $114.8 billion, up 19%; and Israel holds $110.9 billion, up 8.9%.
But the main message from these figures concerns the economic policies of Donald Trump’s administration. The White House cannot simultaneously rely on global capital to finance itself while eroding the confidence of those same investors through a tariff war, sweeping sanctions, pressure on trading partners and geopolitical threats. The more Washington turns the dollar and access to the US market into instruments of political pressure, the greater the incentive for countries to reduce the concentration of their reserves in Treasury securities and shift toward gold, other currencies, real assets or bilateral mechanisms.
From this perspective, any potential use of Treasury sales as leverage against the United States, particularly if the Strait of Hormuz crisis or sanctions pressure on Iran intensifies, would be a double-edged sword. Large-scale selling could push Treasury prices down while driving up yields and the US government’s borrowing costs. Sellers, however, would also face declines in the value of their holdings and liquidity risks. Such a move, therefore, would not be a cost-free weapon but a high-risk instrument for both sides.
China’s trend is important in this regard. The 13.4% decline in Beijing’s holdings, alongside increases among some other holders, shows that changes in reserve composition can occur gradually and through multiple channels. The 19% increase in the UAE’s holdings, 13.9% increase in Ireland’s, 12.1% increases in Belgium’s and Singapore’s, and 9.8% increase in the UK’s holdings also demonstrate that demand for US Treasuries remains and that it would be inaccurate to speak of a “global flight from the dollar.” The 2.3% increase in total foreign holdings confirms the same reality.
Nevertheless, Trump’s policy is caught in a structural contradiction: Washington needs global capital to finance its deficits, while tariffs, sanctions and the destabilization of economic relations put those same investors under pressure. If this path continues, the main consequence will not necessarily be a sudden collapse. Instead, it could be a gradual increase in financing costs, a decline in the appeal of some dollar-denominated assets and an erosion of confidence in the US financial system’s rules.
The $9.29 trillion, therefore, is less an immediate threat than a warning about Washington’s interdependence with the global economy, an interdependence that Trump’s unilateral policies could gradually turn against the United States itself.
NOURNEWS