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

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There’s been a lot of talk in the financial news lately about the size of the U.S. debt and the fact that foreign countries hold a large amount of it. Some legislators and economists fear that the U.S. debt is not only too large to be sustainable but also that allowing foreign countries to own it gives them leverage over our economy.

But the truth is that many investors don’t really know the size of the U.S. debt, how much of it foreign countries own and how it actually affects both the economy and the wallets of average Americans. Here’s the data you’ll need to know.

Also see what the Moddy’s downgrade of the U.S. credit rating means for investors.

Size of US Debt

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. To put that number somewhat into perspective, if you spent $1 million per day, every day, how long do you think it would take to spend $36 trillion? The staggering answer is more than 99,000 years. On that scale, the total amount of U.S. debt is truly colossal.

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. That’s close to five times the amount of the national debt, per Invesco. 

Countries Holding the Most US Debt in 2025

As of April 2025, the list of foreign countries holding U.S. debt is dominated by just three: Japan, the United Kingdom and China. China was formerly the No. 2 holder of U.S. debt, but as the country has been decreasing its holdings over the past few years, the U.K. has taken over that position.

Per the U.S. Treasury, here are the top 20 countries holding U.S. debt as of April 2025.

What Percentage of US Debt Do Foreign Countries Own?

In spite of the immense sums listed in the above table, foreign governments don’t own nearly as much U.S. debt as it may seem. As reported by Fox, as of the end of February, all foreign countries own roughly 24% of outstanding U.S. debt, not the majority of debt as some believe.

Americans actually own 55% of U.S. debt, while the Federal Reserve and the Social Security Administration, along with other U.S. agencies, own 13% and 7%, respectively, according to Reuters. 

Effects of Foreign Ownership

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, according to Invesco.

The bottom line is that even given its fiscal concerns, 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.

However, by and large, foreign ownership of U.S. debt has little direct effect on the wallets of everyday Americans. 

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