United States Gross External Debt: Top 10 Countries holding the most US debt in 2025

 

 A country's gross external debt is the liabilities that are owed to nonresidents by residents. The debtors can be governments, corporations or citizens. External debt may be denominated in domestic or foreign currency. It includes amounts owed to private commercial banks, foreign governments, or international financial institutions such as the International Monetary Fund (IMF) and the World Bank.

The current U.S. debt is approximately $36.2 trillion, according to the U.S. Treasury. For the average American, that number is so large it’s hard to even comprehend. But that’s not the only perspective worth noting. When compared with the total net worth held by the American public, the debt becomes much more rational. Total U.S. household net worth is currently over $160 trillion.

Per the U.S. Treasury, here are the top 10 countries holding U.S. debt in 2025.

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

Read more: Trump's net wealth and his properties in May 2025 with pics

Broadly, US government debt increases as a result of government spending and decreases from tax or other funding receipts, both of which fluctuate during a fiscal year. The aggregate, gross amount that Treasury can borrow is limited by the United States debt ceiling.

In spite of the fear of foreign ownership of U.S. debt, it’s not accurate to portray the market as being held captive by foreign players. The aggregate ownership, at just 24% of outstanding debt, is spread out over a number of different countries, leaving no single country with too much leverage. China, for example, has been slowly liquidating U.S. debt for years without any undue influence on the market as a whole.

At last, the U.S. remains among the safest and most liquid government securities markets in the world. It’s certainly true that from time to time foreign ownership of debt may decrease. This reduction in demand can push interest rates higher in the United States. Conversely, during periods of increased demand, buying pressure can push bond prices higher and yields lower.