20 Countries Holding the Most US Debt in 2025 — and How It Impacts Your Wallet

The noise surrounding America’s massive debt burden has reached fever pitch lately, with politicians and economists alike wringing their hands over foreign countries holding substantial chunks of our financial obligations. Some claim this gives overseas powers dangerous leverage over our economy.

But let’s cut through the hysteria. Most Americans—myself included until I dug into this—don’t truly grasp the scale of US debt, who actually owns it, and how it affects our daily financial lives.

Size of US Debt

Our national debt currently sits at a mind-bending $36.2 trillion. I can barely wrap my head around this figure. Consider this: spending $1 million every single day would take over 99,000 years to reach $36 trillion. Utterly staggering.

Yet viewed differently, it’s less apocalyptic than headlines suggest. American households collectively possess over $160 trillion in net worth—nearly five times our national debt. This perspective rarely makes the news.

Countries Holding the Most US Debt in 2025

As of April 2025, just three nations dominate foreign ownership: Japan leads with $1.13 trillion, followed by the UK at $807.7 billion, and China at $757.2 billion. Interestingly, China has been steadily reducing its holdings, allowing the UK to claim the second position.

The top 20 foreign holders include:

Japan: $1.13 trillion United Kingdom: $807.7 billion China: $757.2 billion Cayman Islands: $448.3 billion Belgium: $411.0 billion Luxembourg: $410.9 billion Canada: $368.4 billion France: $360.6 billion Ireland: $339.9 billion Switzerland: $310.9 billion Taiwan: $298.8 billion Singapore: $247.7 billion Hong Kong: $247.1 billion India: $232.5 billion Brazil: $212.0 billion Norway: $195.9 billion Saudi Arabia: $133.8 billion South Korea: $121.7 billion United Arab Emirates: $112.9 billion Germany: $110.4 billion

What Percentage of US Debt Do Foreign Countries Own?

Despite these enormous figures, foreign governments own just 24% of outstanding US debt—not the majority many believe. Americans actually own 55%, while the Federal Reserve and Social Security Administration hold 13% and 7% respectively.

Effects of Foreign Ownership

I’ve grown increasingly skeptical of the fearmongering around foreign debt ownership. With just 24% spread across numerous countries, no single nation wields excessive leverage. China has been quietly selling off US debt for years without causing market chaos.

Even with our fiscal challenges, US government securities remain among the safest and most liquid investments globally. Sure, fluctuations in foreign demand can influence interest rates—decreased demand pushes rates higher, while increased buying pressure drives yields lower.

But the direct impact on your wallet? Minimal at best. The next time someone tries to scare you about China or Japan “owning America,” remember they’re likely pushing an agenda rather than economic reality.