The exchange rates of East Asian currencies like the New Taiwan dollar and the Korean won have been on a rollercoaster lately, with many blaming unseen pressure from the US for the instability. Some suspect that the US is demanding that trade partners who hold a trade surplus with the US allow their currencies to appreciate to maximize the competitiveness of its own exports. 

These market rumors, which even Bank of Korea Governor Rhee Chang-yong has mentioned, aren’t unfounded. A key piece of evidence is a report written by Stephen Miran, the chair of the White House Council of Economic Advisers and a key Trump strategist, in November of last year. The report contains measures for forcibly appreciating the currencies of trade partners by leveraging tariffs as weapons in an effort to resolve US trade deficits.