The U.S. Treasury Department announced that no major American trading partner manipulated its currency to gain an unfair trade advantage in 2025. According to the Treasury’s semi-annual foreign exchange report released on Thursday, major economies avoided policies intended to prevent effective balance of payments adjustments or gain unfair competitive advantages in international trade.
Treasury Findings on Major Trading Partners
According to the U.S. Treasury Department report, economies evaluated for macroeconomic and foreign exchange policies met no criteria for currency manipulation under the Trade Facilitation and Trade Enforcement Act of 2015. The Treasury assesses major trading partners based on three specific metrics: a significant bilateral trade surplus with the U.S., a material current account surplus, and persistent, one-sided intervention in foreign exchange markets.
The assessment covers economies representing a substantial share of U.S. foreign trade. While no trading partner received the manipulator label, the Treasury placed several nations on its monitoring list for closer scrutiny regarding their foreign exchange practices and macroeconomic policies.
Monitoring List and Global Economic Context
Placement on the Treasury monitoring list requires economies to meet two of the three statutory criteria, or account for a disproportionate share of the overall U.S. trade deficit. According to the Treasury Department, monitored countries must maintain transparent foreign exchange reserves and communicate clearly regarding market interventions.
Global currency markets experienced varying pressures throughout 2025, driven by shifting interest rate expectations from the Federal Reserve and other central banks. Despite these macroeconomic headwinds, the Treasury’s evaluation concluded that foreign exchange interventions by major trading partners remained largely defensive rather than predatory.
Implications for U.S. Trade Policy
The determination spares major trading partners from potential U.S. trade sanctions or mandatory bilateral negotiations aimed at currency appreciation. Economists note that avoiding formal manipulation labels helps stabilize trade relations between the United States and key exporting nations in Asia and Europe.
The Treasury Department continues to urge transparency from all trading partners regarding intervention data and reserve holdings. The biannual reporting cycle serves as an ongoing diplomatic tool to discourage unfair competitive currency devaluations in global commerce.