The U.S. Department of the Treasury presented its semiannual report on the macroeconomic and exchange rate policies of key trading partners, identifying 10 economic jurisdictions warranting close monitoring for their exchange rate behavior and macroeconomic policies. These include China, Japan, South Korea, Taiwan, Thailand, Singapore, Vietnam, Germany, Ireland, and Switzerland. Notably, Thailand has been added back to this list after being absent from the previous report in June 2025.
Under the leadership of Secretary Scott Bessent, the U.S. Treasury submitted its report on macroeconomic and exchange rate policies of major trading partners to Congress, stating that no trading partner was identified as a "Currency Manipulator" over the four quarters ending June 2025. However, the report has raised the level of scrutiny in line with President Trump's "America First" policy to eliminate unfair trade advantages and reduce the U.S. trade deficit.
A key highlight is the announcement of 10 economic jurisdictions on the "Monitoring List," comprising China, Japan, South Korea, Taiwan, Thailand, Singapore, Vietnam, Germany, Ireland, and Switzerland. Thailand is the only country newly added compared to the June 2025 report. The U.S. has begun discussions with six major trading partners, including Thailand and Japan, to reaffirm commitments to avoid currency manipulation and increase transparency in exchange rate data disclosure.
Regarding China, although it is not yet labeled a currency manipulator, the U.S. Treasury sharply criticized its lack of transparency in currency policies and warned that this opacity will not prevent China from being blacklisted in the future if evidence emerges of intervention to curb the yuan's appreciation. Given China's substantial external trade surplus, the U.S. urges Chinese authorities to allow the yuan to appreciate according to market mechanisms and economic fundamentals.
The Trump administration's report also introduces stricter criteria, monitoring not only interventions to prevent currency appreciation but also those aimed at resisting depreciation. It expands scrutiny to include capital control policies, financial institution regulations, and transactions through pension funds or other financial instruments that could impact exchange markets to gain trade advantages.