These Countries Own The Most U.S. Debt, and It’s a Big Deal

24/7 Wall St. Insights

• The U.S. government currently owes $36.2 trillion in debt, a 54.0% increase from five years ago.
• About one-third of that debt is held by foreign investors in the form of U.S. Treasury securities.
• While foreign ownership of U.S. debt keeps demand for the dollar high, it also gives national governments a high degree of leverage over the U.S. financial system.
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The United States runs on borrowed money. At last count, the U.S. government owed $36.2 trillion in debt, a 54.0% increase from five years ago. According to the most recent tallies from the U.S. Treasury, $8.5 trillion of that debt is held by foreign investors in the form of Treasury securities like bonds, bills, and notes. These holdings are spread across national governments, foreign central banks, and private investors.

Foreign ownership of U.S. debt has major implications for the U.S. financial system. In one sense, foreign demand for Treasury securities allows the United States to finance its budget deficits at lower interest rates. When countries like Japan and China invest in U.S. debt, borrowing costs for the U.S. government fall, indirectly lowering operating costs for American businesses and consumers.

Many countries with close financial ties to the U.S. also use U.S. debt as a sound investment and safe store of value When countries run a large trade surplus with the United States, they accumulate large amounts of U.S. dollars, and often reinvest them in U.S. government debt. Many of the largest holders of U.S. debt – China and Japan, for example – sell far more goods to the U.S. than they buy. And while Japan has a smaller trade surplus than China, Japan’s central bank and financial institutions have historically been aggressive buyers of U.S. Treasuries.

And for many large owners of U.S. debt, Treasury bonds, bills, and notes are more than just a safe store of value. Wealthy countries with large foreign exchange reserves like China buy U.S. debt to keep demand for the dollar high and help stabilize the yuan’s value relative to it. U.S. treasuries also often offer higher interest relative to countries with ultra-low interest rates like Japan.

While the spread of U.S. debt around the world benefits the U.S. and keeps demand for the dollar high, foreign debt ownership also means that the U.S. is sending more taxpayer money abroad in the form of interest payments – especially as U.S. interest rates rise. In 2023, the U.S. paid nearly $200 billion in interest to foreign holders of its debt, including $20 billion to China.

And while owning U.S. debt does not equate to power, it does give large debtholders some influence over the U.S. financial system. If a major country were to reduce its Treasury purchases significantly, U.S. interest rates and borrowing costs could rise. Foreign debt ownership also exposes the U.S. to uncertainties in the global financial system. Some analysts worry that foreign creditors could use their holdings as leverage in an environment of rising geopolitical tensions.

To determine the countries that own the most U.S. debt, 24/7 Wall St. reviewed data on foreign holdings of U.S. Treasury marketable and non-marketable bills, bonds, and notes as of December 2024. Supplemental data on GDP is from the World Bank, while data used to calculate largest trading partners are from the International Monetary Fund.

20. Germany

• Total U.S. debt held: $97.00 billion
• Share of total U.S. foreign debt: 1.1%
• Total foreign exchange reserves: $345.34 billion
• National GDP: $4.46 trillion ($52,746 per capita)
• Largest trading partners: Netherlands, United States, France, China, Poland, Italy, Belgium, Austria, Czech Republic, Switzerland

19. Mexico

• Total U.S. debt held: $102.60 billion
• Share of total U.S. foreign debt: 1.2%
• Total foreign exchange reserves: $230.33 billion
• National GDP: $1.79 trillion ($13,926 per capita)
• Largest trading partners: United States, China, Canada, Germany, South Korea, Japan, Brazil, Taiwan, Malaysia, Vietnam

18. South Korea

• Total U.S. debt held: $124.90 billion
• Share of total U.S. foreign debt: 1.5%
• Total foreign exchange reserves: $415.70 billion
• National GDP: $1.71 trillion ($33,121 per capita)
• Largest trading partners: China, United States, Vietnam, Japan, Australia, Taiwan, Saudi Arabia, Germany, Singapore, Hong Kong

17. Saudi Arabia

• Total U.S. debt held: $137.50 billion
• Share of total U.S. foreign debt: 1.6%
• Total foreign exchange reserves: $434.55 billion
• National GDP: $1.07 trillion ($28,895 per capita)
• Largest trading partners: China, India, Japan, South Korea, United States, United Arab Emirates, Egypt, Bahrain, Singapore, France

16. Norway

• Total U.S. debt held: $157.60 billion
• Share of total U.S. foreign debt: 1.9%
• Total foreign exchange reserves: $80.11 billion
• National GDP: $485.51 billion ($87,962 per capita)
• Largest trading partners: Germany, United Kingdom, Sweden, Netherlands, China, Poland, Denmark, France, United States, Belgium

15. Brazil

• Total U.S. debt held: $201.60 billion
• Share of total U.S. foreign debt: 2.4%
• Total foreign exchange reserves: $388.57 billion
• National GDP: $2.17 trillion ($10,044 per capita)
• Largest trading partners: China, United States, Argentina, Germany, Netherlands, Mexico, Chile, Spain, Japan, India

14. India

• Total U.S. debt held: $219.10 billion
• Share of total U.S. foreign debt: 2.6%
• Total foreign exchange reserves: $638.26 billion
• National GDP: $3.55 trillion ($2,485 per capita)
• Largest trading partners: United States, China, United Arab Emirates, Russia, Saudi Arabia, Iraq, Singapore, Indonesia, Netherlands, South Korea

13. Singapore

• Total U.S. debt held: $249.00 billion
• Share of total U.S. foreign debt: 2.9%
• Total foreign exchange reserves: $383.72 billion
• National GDP: $501.43 billion ($84,734 per capita)
• Largest trading partners: China, United States, Malaysia, Taiwan, Hong Kong, Indonesia, South Korea, Japan, Thailand, Australia

12. Hong Kong

• Total U.S. debt held: $255.00 billion
• Share of total U.S. foreign debt: 3.0%
• Total foreign exchange reserves: $421.40 billion
• National GDP: $382.05 billion ($50,697 per capita)
• Largest trading partners: China, Taiwan, United States, Singapore, Japan, South Korea, Vietnam, India, United Arab Emirates, United Kingdom

11. Taiwan

• Total U.S. debt held: $282.50 billion
• Share of total U.S. foreign debt: 3.3%
• Total foreign exchange reserves: $576.85 billion
• National GDP: N/A
• Largest trading partners: N/A

10. Switzerland

• Total U.S. debt held: $288.50 billion
• Share of total U.S. foreign debt: 3.4%
• Total foreign exchange reserves: $952.69 billion
• National GDP: $884.94 billion ($99,995 per capita)
• Largest trading partners: Germany, United States, China, Italy, France, Slovenia, United Kingdom, Austria, United Arab Emirates, India

9. France

• Total U.S. debt held: $332.30 billion
• Share of total U.S. foreign debt: 3.9%
• Total foreign exchange reserves: $272.69 billion
• National GDP: $3.03 trillion ($44,461 per capita)
• Largest trading partners: Germany, Belgium, Italy, Spain, United States, Netherlands, China, United Kingdom, Switzerland, Poland

8. Ireland

• Total U.S. debt held: $336.20 billion
• Share of total U.S. foreign debt: 3.9%
• Total foreign exchange reserves: $12.60 billion
• National GDP: $545.63 billion ($103,685 per capita)
• Largest trading partners: United States, United Kingdom, Germany, Netherlands, France, Belgium, China, Switzerland, Italy, Spain

7. Belgium

• Total U.S. debt held: $374.60 billion
• Share of total U.S. foreign debt: 4.4%
• Total foreign exchange reserves: $82.00 billion
• National GDP: $632.22 billion ($53,475 per capita)
• Largest trading partners: Netherlands, Germany, France, United States, United Kingdom, Italy, China, Spain, Ireland, Poland

6. Canada

• Total U.S. debt held: $378.80 billion
• Share of total U.S. foreign debt: 4.4%
• Total foreign exchange reserves: $123.08 billion
• National GDP: $2.14 trillion ($53,372 per capita)
• Largest trading partners: United States, China, Mexico, Japan, Germany, United Kingdom, South Korea, Italy, Vietnam, Brazil

5. Cayman Islands

• Total U.S. debt held: $418.90 billion
• Share of total U.S. foreign debt: 4.9%
• Total foreign exchange reserves: N/A
• National GDP: $6.60 billion ($96,074 per capita)
• Largest trading partners: N/A

4. Luxembourg

• Total U.S. debt held: $423.90 billion
• Share of total U.S. foreign debt: 5.0%
• Total foreign exchange reserves: $1.12 billion
• National GDP: $85.76 billion ($128,259 per capita)
• Largest trading partners: Germany, Belgium, France, Netherlands, Italy, United States, Poland, Spain, United Kingdom, Austria

3. United Kingdom

• Total U.S. debt held: $722.70 billion
• Share of total U.S. foreign debt: 8.5%
• Total foreign exchange reserves: $189.23 billion
• National GDP: $3.34 trillion ($48,867 per capita)
• Largest trading partners: United States, Germany, Netherlands, China, France, Ireland, Belgium, Italy, Norway, Spain

2. China

• Total U.S. debt held: $759.00 billion
• Share of total U.S. foreign debt: 8.9%
• Total foreign exchange reserves: $3.57 trillion
• National GDP: $17.79 trillion ($12,614 per capita)
• Largest trading partners: United States, Japan, South Korea, Hong Kong, Taiwan, Russia, Vietnam, Australia, Germany, Malaysia

1. Japan

• Total U.S. debt held: $1.06 trillion
• Share of total U.S. foreign debt: 12.4%
• Total foreign exchange reserves: $1.24 trillion
• National GDP: $4.21 trillion ($33,834 per capita)
• Largest trading partners: China, United States, Australia, Taiwan, South Korea, Thailand, United Arab Emirates, Vietnam, Germany, Saudi Arabia

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