The U.S. Department of the Treasury released its semiannual report to Congress Thursday reviewing the macroeconomic and foreign exchange policies of major U.S. trading partners, concluding that no country manipulated its currency against the U.S. dollar during the review period.
The January 2026 report examined the policies of the United States’ 20 largest trading partners — representing about 78% of U.S. trade in goods and services — over the four quarters ending June 2025. Treasury found no major trading partner engaged in currency manipulation to gain an unfair competitive advantage or to prevent balance-of-payments adjustment.
Treasury Secretary Scott Bessent said the report reflects President Donald Trump’s America First Trade Policy, which places increased emphasis on monitoring currency practices and non-market policies.
“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,” Bessent said.
China Not Designated, But Remains Under Scrutiny
Treasury did not designate China as a currency manipulator in the report but cited China’s lack of transparency around its exchange-rate policies and practices.
The report warned that this lack of transparency would not prevent Treasury from designating China in the future if evidence shows intervention aimed at resisting appreciation of the renminbi. Treasury also pointed to China’s large and growing external surpluses and described the renminbi as substantially undervalued relative to economic fundamentals.
Ten Economies Placed on Monitoring List
Although no country met all three statutory criteria for enhanced analysis under the Trade Facilitation and Trade Enforcement Act of 2015, Treasury placed 10 economies on its Monitoring List due to currency practices and macroeconomic policies that warrant closer attention.
Those economies are China, Japan, Korea, Taiwan, Thailand, Singapore, Vietnam, Germany, Ireland, and Switzerland. Thailand is the only new addition compared to the previous June 2025 report.
Treasury said economies remain on the Monitoring List for at least two reporting cycles to ensure any improvements are sustained.
Expanded Analysis and New Oversight Tools
The report marks the first application of strengthened analytical standards under the Trump administration’s trade policy.
Treasury said it is now examining whether central banks intervene symmetrically — responding similarly to both currency depreciation and appreciation pressures — and is expanding its review to include capital controls, macroprudential measures, government investment vehicles, and the use of foreign exchange swaps and forward positions.
Treasury also confirmed it has issued joint statements with six trading partners — Japan, Switzerland, Malaysia, Thailand, Korea, and Taiwan — reaffirming commitments to avoid currency manipulation and to improve transparency and disclosure practices.
The report was submitted to Congress pursuant to federal law and covers economic and exchange-rate developments through June 2025.
