WASHINGTON, D.C. — The Treasury Department concluded that no major U.S. trading partner manipulated its currency to gain an unfair trade advantage during 2025, while keeping China and nine other economies on a watch list for continued monitoring of their exchange-rate policies.
The findings, released in Treasury’s semiannual Report to Congress on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States, cover the four quarters ending in December 2025 and assess economies representing nearly 80% of U.S. trade in goods and services.
Treasury determined that none of the major trading partners met the statutory definition of currency manipulation under the Omnibus Trade and Competitiveness Act of 1988.
The department also found that no major trading partner met all three statutory criteria requiring enhanced analysis under the Trade Facilitation and Trade Enforcement Act of 2015.
Despite those findings, Treasury retained 10 economies on its Monitoring List: China, Japan, South Korea, Taiwan, Thailand, Singapore, Vietnam, Germany, Ireland and Switzerland. All were also included in the department’s January 2026 report.
China remained a particular focus because of what Treasury described as limited transparency surrounding its exchange-rate policies and practices.
While declining to designate China as a currency manipulator, the department stated that the lack of transparency would not prevent such a designation in the future if evidence shows Beijing is intervening through formal or informal channels to suppress appreciation of the renminbi.
“For decades, unfair currency practices abroad have contributed to the U.S. trade deficit and the hollowing out of U.S. manufacturing employment,” Treasury Secretary Scott Bessent stated. He added that the department will continue monitoring foreign exchange intervention and other non-market practices that could provide trading partners with an unfair competitive advantage.
Treasury submitted the report to Congress under the Omnibus Trade and Competitiveness Act of 1988 and the Trade Facilitation and Trade Enforcement Act of 2015.
The full report is available at: https://home.treasury.gov/system/files/206/July-2026-FX-Report.pdf
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