China and Japan appear to be dumping US government debt to hit back at Trump's tariffs, which is bad news for anyone borrowing money in America.

• China is selling the US bonds it holds — the move often called the "nuclear option."
• When big holders sell, bond prices fall and interest rates on US debt go up.
• Higher yields mean the US has to pay more to attract new buyers of its debt.
• Japan, the other top holder of US debt, is believed to be selling too.
• The April 2025 bond sell-off was unusual: normally bonds rally when markets panic.

Outlook: If the selling continues, borrowing costs stay high and rate cuts become harder to deliver.