No major U.S. trading partner was found to be manipulating its currency in 2024, according to the first semi-annual currency report released by the U.S. Treasury under President Donald Trump’s new administration. However, the report issued a stern warning to China and expanded the department’s watchlist to include Ireland and Switzerland, raising the total number of countries under scrutiny to nine.
While stopping short of designating China as a currency manipulator, the Treasury criticized Beijing for a lack of transparency in its exchange rate policies. “China stands out among our major trading partners in its lack of transparency around its exchange rate policies and practices,” the report stated, warning that any future signs of intervention to prevent yuan appreciation could lead to formal action.
The current monitoring list now includes China, Japan, South Korea, Taiwan, Singapore, Vietnam, Germany, Ireland, and Switzerland. Countries are added to the list if they meet at least two of three criteria: a bilateral trade surplus with the U.S. exceeding $15 billion, a current account surplus above 3% of GDP, and persistent one-sided foreign exchange intervention.
Ireland and Switzerland were newly added due to their significant trade and current account surpluses with the U.S. In response, the Swiss National Bank denied engaging in currency manipulation, saying it operates solely in Switzerland’s economic interest. “The SNB does not seek to prevent adjustments in the balance of trade or to gain unfair competitive advantages,” the bank said, noting that a strong Swiss franc recently pushed inflation into negative territory.
The report was released just hours after President Trump held his first phone conversation with Chinese President Xi Jinping since returning to office. The call came amid ongoing trade tensions, now further complicated by disputes over access to critical minerals.
Trump had previously labeled China a currency manipulator in August 2019 during his first term, a designation that was dropped in early 2020 during a temporary easing of trade tensions. Under President Joe Biden, no trading partner was formally labeled a manipulator, though concerns about China’s currency practices persisted.
The report noted that 2024 was marked by a broad strengthening of the U.S. dollar—up 7% against a basket of major currencies—making it less likely countries were actively devaluing their own currencies. However, with the dollar down roughly 9% since Trump’s return to office, Treasury officials cautioned that more nations might be tempted to intervene in currency markets to offset competitive disadvantages.
Looking ahead, the Treasury said it may expand its surveillance to include sovereign wealth and state pension fund activity, particularly in China, to ensure they are not being used to quietly influence currency values. While no current evidence of such activity was cited, officials noted that similar tactics have been employed by other nations in the past.
