Following G7 Summit, Warren and Scott (FL) Send Bipartisan Letter Urging Trump Administration to Address China’s Currency Manipulation

Following G7 Summit, Warren and Scott (FL) Send Bipartisan Letter Urging Trump Administration to Address China's Currency Manipulation

"China appears to be deliberately suppressing the value of its currency to make its exports artificially cheap and American-made goods artificially expensive, unfairly undermining the competitiveness of U.S. manufacturers and workers."

Text of Letter (PDF)

Washington, D.C. - Following the G7 summit in Évian, France this week, U.S. Senators Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing and Urban Affairs Committee, and Senator Rick Scott (R-Fla.), sent a letter to Treasury Secretary Scott Bessent urging the Administration to take decisive action in response to China's ongoing currency manipulation and the resulting trade imbalances impacting American workers and industries.

"For roughly two decades, China's currency intervention was legible through its central bank where foreign exchange purchases showed up on the (People's Bank of China)'s balance sheet. In the last decade or so, however, it has shifted to a less visible approach- routing dollar purchases through a murky network of state-owned commercial banks, policy banks, and its sovereign wealth fund," wrote the lawmakers. "The result is a system deliberately designed to evade detection: China is the only major U.S. trading partner that does not publicly disclose its foreign exchange interventions."

The lawmakers outlined their concerns surrounding China's unfair and manipulative practices on American families and workers: "China's trade surplus reached $1.2 trillion in 2025-a record high representing nearly 70 percent of all global goods trade surpluses. Under normal market conditions, a surplus that large would lead to a rise in China's currency value. That increase has yet to occur, and the reason is likely due to a deliberate policy of manipulation," continued the lawmakers. "The consequences of this manipulation on American workers are imminent. A deliberately undervalued currency acts simultaneously as a hidden subsidy on the costs of imports while making U.S. exports more expensive."

Amid the aftermath of the G7 summit with American allies around the world, the lawmakers wrote: "Our G7 allies share concerns about China's currency, and the aftermath of the summit presents an opportunity to coordinate a unified response. It is critical to mitigate the consequences and impacts of China's unfair and manipulative practices on American families and workers... Given numerous media reports following the summit, we expect that our allies would welcome continued engagement on the issue of trade imbalances with China. "

"We urge the Administration to address China's currency practices directly in the next Foreign Exchange Report-including consideration of a formal finding of manipulation-and to continue coordinating with G7 allies toward a unified response that pressures China to allow market driven appreciation and full transparency in its exchange rate practices," concluded the lawmakers.

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