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REUTERS/Kevin Lamarque/File Photo More (Steven Mnuchin.Thomson Reuters) In an interview with the Financial Times , US Secretary Treasury Steven Mnuchin defended President Donald Trump’s decision not to label China a currency manipulator. Mnuchinsaid Trump’s comments during the campaign “reflected previous periods of time,” andexplained the shiftby pointing to “the combination of the facts and the combination of what the president said and how China is working with us,” according to the FT. During his campaign, Trump pledgedto labelChina a currency manipulator on his first day in office. He ultimately did not do that, andthe Treasury Department did not label the country as a currency manipulator in their semi-annual report on the currency practices of the major trading partners of the US, which was published on Friday. There are three criteria that must be met for a country to be labeled a currency manipulator by the Treasury Department : The country must have a significant bilateral trade surplus with the US. The country has a “material” currency account surplus. The countryis engaged in persistent one-sided intervention in the foreign exchange market. In the report, the Treasury includeda “Monitoring List” of trade partnersthat “merit attention based on an analysis of the three criteria.” China, Japan, Korea, Taiwan, Germany, and Switzerland were on the April list, as well as in the last report published in October. “Treasury will be scrutinizing Chinas trade and currency practices very closely, especially in light of the extremely sizable bilateral trade surplus that China has with the United States,” the department wrote in the report.
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