The U.S. Department of the Treasury has released its semiannual report to Congress on the macroeconomic and foreign exchange policies of major trading partners of the United States. This document evaluates the policies of these partners, accounting for approximately 78 percent of U.S. foreign trade in goods and services during the four quarters ending December 2024.
The report emphasizes that unfair currency practices abroad have historically contributed to the U.S. trade deficit and impacted domestic manufacturing employment. The Trump Administration has declared a firm stance against persistent trade deficits, attributing initial changes in some trading partners' policies to President Trump's leadership. The Treasury will continue monitoring foreign exchange interventions or non-market practices by trading partners that could manipulate currencies for competitive advantage and hinder U.S. economic recovery.
According to the Omnibus Trade and Competitiveness Act of 1988, the report analyzed these practices and concluded that no major U.S. trading partner manipulated its currency exchange rate with the U.S. dollar to prevent effective balance of payments adjustments or gain unfair trade advantages during this period.
Furthermore, under the Trade Facilitation and Trade Enforcement Act of 2015, Treasury determined that no major trading partner met all criteria for enhanced analysis during this timeframe.
President Trump remains dedicated to fostering economic growth, eliminating trade deficits, and counteracting unfair trade practices, including those related to currency manipulation. "The Trump Administration has put our trading partners on notice that macroeconomic policies that incentivize an unbalanced trading relationship with the United States will no longer be accepted," said Secretary of the Treasury Scott Bessent. He added that moving forward, "Treasury will use all available tools at its disposal to implement strong countermeasures against unfair currency practices."
Nine economies are listed on Treasury’s “Monitoring List” due to their currency practices and macroeconomic policies: China, Japan, Korea, Taiwan, Singapore, Vietnam, Germany, Ireland, and Switzerland.
Although China is not designated as a currency manipulator in this report despite RMB depreciation pressures, it is noted for its lack of transparency regarding exchange rate policies. This lack does not exclude potential future designation if evidence suggests intervention efforts against RMB appreciation.
The report is submitted in compliance with Section 3005 of the Omnibus Trade and Competitiveness Act of 1988 and Section 701 of the Trade Facilitation and Trade Enforcement Act of 2015.
