(CNN) – The United States needs to borrow a ton of money this week, right in the middle of a fight with its biggest creditor.
According to the Treasury Department, the government plans to sell about $294 billion of debt. That’s the highest amount for a single week since the record set during the 2008 financial crisis.
The debt auction comes at an awkward time. Last week, President Donald Trump vowed to impose wide-ranging tariffs on China, which owns more treasury bonds than any foreign country – a total of $1.17 trillion of U.S. debt.
China responded to Trump’s announced sanctions by saying it would fight any trade war “to the end.”
When asked if Chinese leaders were considering lending less money to the U.S. in reaction to tariffs, China’s ambassador to the U.S. said, “We are looking at all options.”
Washington and Beijing are, however, in talks aimed at reaching a deal that would avert a full-blown trade war.
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