US Examines Currency Manipulation Ahead of Trade Policy Deadline

Treasury Secretary Highlights Currency Concerns

The Trump administration is expanding its focus beyond tariffs and non-tariff barriers to examine currency manipulation as part of an ongoing trade policy review. U.S. Treasury Secretary Scott Bessent stated on Friday that currency policies are being considered in the administration’s efforts to address trade imbalances.

“We’re also looking at currency manipulation,” Bessent said in an interview. “The U.S. has a strong dollar policy, but because we have a strong dollar policy, it doesn’t mean that other countries get to have a weak currency policy.”

New Tariff Plans Under Development

On Thursday, President Donald Trump directed his economic team to develop plans for reciprocal tariffs on countries that tax U.S. imports. This move raises concerns about a potential global trade war.

While the directive did not impose new tariffs immediately, it ordered an assessment of foreign duties and trade barriers. The findings are expected by April 1, with potential policy actions to follow.

Evaluating Trade Barriers and Currency Policies

Bessent outlined the administration’s approach, emphasizing the creation of a comprehensive index to measure trade imbalances.

“We’re going to come up with what is the equivalent of … what I would call a reciprocal index: country by country, the outstanding tariffs, non-tariff barriers, and currency manipulation,” he explained.

Potential Impact on Global Trade

The proposed tariff policies could be significant if trading partners do not adjust their own trade barriers. Bessent indicated that the final approach would depend on how other nations respond to U.S. concerns.

“US Examines Currency Manipulation Ahead of Trade Policy Deadline”