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 June 2025.
Secretary of the Treasury Scott Bessent remarked: “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. Treasury is closely monitoring whether our trading partners are acting through foreign exchange intervention and non-market policies and practices to manipulate their currencies for unfair competitive advantage in trade. In support of President Trump’s America First Trade Policy, starting with this Report, Treasury is strengthening its analysis of trading partners’ currency policies and practices. These enhanced analyses inform Treasury’s assessments of exchange rate policies and practices of the United States’ major trading partners.”
The Report highlights that, as part of President Trump’s America First Trade Policy, in Spring 2025 Treasury initiated discussions with a number of trading partners that have regularly appeared on the Monitoring List of recent Foreign Exchange Reports. To date, Treasury has released joint statements with the relevant authorities of six major trading partners – Japan, Switzerland, Malaysia, Thailand, Korea, and Taiwan. These joint statements reinforce close consultations on macroeconomic and foreign exchange matters and reaffirm each party’s commitment to avoid manipulating exchange rates to prevent effective balance of payments adjustment or to gain an unfair competitive advantage. They also highlight the importance of transparent exchange rate policies and practices, and improve the frequency and timeliness of trading partners’ foreign exchange disclosures.
In accordance with the Omnibus Trade and Competitiveness Act of 1988, Treasury analyzed in this Report the practices of the United States’ major trading partners and concluded 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 June 2025.
While Treasury has not designated China as a currency manipulator in this Report, 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. Given China’s extremely large and growing external surpluses, and its substantially undervalued exchange rate, it is important that the Chinese authorities allow the RMB exchange rate to strengthen in a timely and orderly manner in line with market pressure and macroeconomic fundamentals.
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 June 2025. However, ten economies are on Treasury’s “Monitoring List” of major trading partners whose currency practices and macroeconomic policies merit close attention: China, Japan, Korea, Taiwan, Thailand, Singapore, Vietnam, Germany, Ireland, and Switzerland. All except Thailand were on the Monitoring List in the June 2025 Report.
As noted above, this Report for the first time contains strengthened analysis of these economies. Specifically:
In addition to its assessment of whether a trading partner is engaging in persistent, one-sided intervention as required under the 2015 Act, Treasury is now monitoring more broadly the extent to which economies that choose to smooth exchange rate movements do so to resist depreciation pressure in the same manner as they do to resist appreciation pressure.
Treasury is also increasing its vigilance about other policies beyond foreign exchange intervention employed by U.S. major trading partners that may influence foreign exchange markets such as through the use of capital controls and macroprudential measures and through other government investment vehicles such as government pension funds.
Because central banks may use foreign exchange swaps to sterilize or offset spot interventions so as not to affect domestic monetary conditions, Treasury is also now looking more closely at trading partners’ net forward positions.
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.