WASHINGTON – The U.S. Department of the Treasury delivered its semiannual Report to Congress on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States. In this Report, Treasury reviewed and assessed the policies of major U.S. trading partners, comprising about 78 percent of U.S. foreign trade in goods and services, during the four quarters through December 2024.
For decades, unfair currency practices abroad have contributed to the U.S. trade deficit and hollowed out U.S. manufacturing employment. The Trump Administration has been clear that we will no longer accept persistent trade deficits and, thanks to President Trump’s strong leadership, we are beginning to see changes in some of our trading partners’ policies that could reverse these deficits. Treasury will continue to closely monitor whether our trading partners may act through foreign exchange intervention, or non-market policies and practices, to manipulate their currencies for unfair competitive advantage in trade and prevent the swift recovery of American economic strength.
In accordance with the Omnibus Trade and Competitiveness Act of 1988, the Report analyzed the practices of the United States’ major trading partners and concludes that no major U.S. trading partner manipulated the rate of exchange between its currency and the U.S. dollar for purposes of preventing effective balance of payments adjustments or gaining unfair competitive advantage in international trade during the four quarters through December 2024.
In this Report, Treasury found that no major trading partner met all three criteria for enhanced analysis under the Trade Facilitation and Trade Enforcement Act of 2015 during the four quarters ending December 2024.
President Trump is committed to pursuing economic and trade policies that will spur an American revitalization marked by strong economic growth, the elimination of destructive trade deficits, and countering unfair trade practices. This includes combatting unfair currency practices that facilitate competitive advantage, such as unwarranted intervention in currency markets.
“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, and we will continue to strengthen our analysis of currency practices and increase the consequences of any manipulation designation. Moving forward, Treasury will use all available tools at its disposal to implement strong countermeasures against unfair currency practices,” said Secretary of the Treasury Scott Bessent. “In line with President Trump’s America First Trade Policy, the United States Treasury will be vigilant in identifying and taking action against currency manipulation and will continue to closely monitor a range of relevant macroeconomic and financial policies implemented by our trading partners that propagate imbalances, contribute to significant exchange rate misalignments, or result in an unfair competitive advantage in trade.”
Nine economies are on Treasury’s “Monitoring List” of major trading partners whose currency practices and macroeconomic policies merit close attention: China, Japan, Korea, Taiwan, Singapore, Vietnam, Germany, Ireland, and Switzerland.
While Treasury has not designated China as a currency manipulator in this report amid RMB depreciation pressure, China stands out among our major trading partners in its lack of transparency around its exchange rate policies and practices. This lack of transparency will not preclude Treasury from designating China if available evidence suggests that it is intervening through formal or informal channels to resist RMB appreciation in the future.
Today’s Report is submitted to Congress pursuant to Section 3005 of the Omnibus Trade and Competitiveness Act of 1988, 22 U.S.C. § 5305, and Section 701 of the Trade Facilitation and Trade Enforcement Act of 2015, 19 U.S.C. § 4421.