China slashes U.S. debt holdings by 5.6% in last 12 months

China is dumping billions in United States debt.

Is this why President Donald Trump surprised everyone and raised tariffs on Chinese goods last week?

According to the latest Treasury Department data, Beijing has cut its holdings of U.S. government notes, bonds, and bills by $67.2 billion, or 5.6% in the 12-month period ending in March.

In total, China holds $1.12 trillion in U.S. debt.

Since its peak in 2012, Chinese holdings of Treasurys has tumbled $200 billion and accounts for seven percent of total U.S. debt outstanding.

Japan, meanwhile, has gone the opposite direction in the last 12 months, boosting its debt holdings from $1.044 trillion to $1.078 trillion.

The United Kingdom, Brazil, Saudi Arabia, India, and Mexico all raised their totals from February to March.