WASHINGTON, June 19 (WSH) — Amid growing discontent with President Donald Trump’s tariff policies, Canada sharply reduced its holdings of U.S. Treasury securities in April 2025, selling off $57.8 billion—nearly seven times the amount offloaded by China in the same period.
The move made Canada the largest net seller of U.S. debt that month and triggered widespread concern over reactions from key American allies beyond the U.S.-China financial dynamic.
Canada Falls from Top Five U.S. Debt Holders, Market Reacts
According to U.S. Treasury Department data released on June 18, foreign investors held nearly $9 trillion in U.S. Treasury securities in April, down just $36.1 billion from March, marking the second-highest level in history and signaling continued global confidence in U.S. debt.
However, Canada’s holdings plummeted to $368.4 billion, pushing it out of the top five and into seventh place among foreign creditors. This dramatic reduction sent ripples through global financial markets.
By contrast, China reduced its U.S. debt holdings by only $8.2 billion in April—its second consecutive month of decline—bringing its total to $757.2 billion, the lowest level since 2009. Still, China remains the third-largest foreign holder of U.S. Treasuries. Japan and the United Kingdom increased their holdings by $3.7 billion and $28.4 billion respectively, taking the top two spots.
Analysts: Tariff Disputes May Have Triggered Political Signal
Analysts suggest that the Trump administration’s renewed tariff scrutiny on Canadian imports may have provoked this financial maneuver. The scale and swiftness of Canada’s sell-off are seen by some observers as a possible political signal rather than a purely market-based decision.
