**Treasury Releases Report on Trade Partners' Macroeconomic and Currency Policies**

The U.S. Department of the Treasury has presented its semiannual Report to Congress concerning the Macroeconomic and Foreign Exchange Policies of Major Trading Partners. This report scrutinizes the policies of the United States' primary trading partners, representing approximately 78% of U.S. foreign trade in goods and services, over the four quarters ending in December 2024.

Historically, unfair currency practices by other countries have been a significant contributor to the U.S. trade deficit and the decline in American manufacturing jobs. Under the Trump Administration, there has been a pronounced stance against tolerating persistent trade deficits. Thanks to President Trump's leadership, noticeable alterations in the policies of some trading partners are emerging, potentially reversing these deficits. Treasury remains vigilant, monitoring any foreign exchange interventions or non-market policies by trading partners that might undermine U.S. economic recovery by manipulating currency values to gain an unfair trading advantage.

In line with the Omnibus Trade and Competitiveness Act of 1988, the Treasury's analysis concluded that no major U.S. trading partner manipulated their currency exchange rate against the U.S. dollar to create unfair competitive advantages or disrupt balance of payments adjustments during the reviewed period. Additionally, the report determined that none of the major trading partners met all the criteria for enhanced scrutiny according to the Trade Facilitation and Trade Enforcement Act of 2015 during the four quarters ending December 2024.

President Trump's commitment to invigorating the American economy includes addressing and counteracting unfair trade and currency practices. "The Trump Administration has put our trading partners on notice that macroeconomic policies encouraging an unbalanced trading relationship will no longer be accepted," said Treasury Secretary Scott Bessent. He emphasized that the Treasury would intensify its analysis of currency practices and impose stronger measures against any manipulation.

Nine economies have been placed on the Treasury's "Monitoring List" for close observation regarding their currency practices and macroeconomic policies. These economies include China, Japan, Korea, Taiwan, Singapore, Vietnam, Germany, Ireland, and Switzerland. Although China has not been designated as a currency manipulator in this report due to RMB depreciation pressures, the Treasury highlighted China's lack of transparency in its exchange rate policies. The Treasury has warned that it might designate China as a manipulator if evidence indicates intervention to prevent RMB appreciation in the future.

This report is submitted to Congress in accordance 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.