The appreciation of the New Taiwan Dollar may be linked to Taiwan's effort to avoid being listed as a currency manipulator by the US Treasury, but it inevitably weakens export competitiveness.

Recent new tariffs introduced by the US government have created ripples in the calm waters of the global market, stirring up considerable turmoil. Despite a 90-day grace period provided by the Trump administration, market fears have not subsided.

With the total US debt now soaring to $36 trillion, and $9.2 trillion maturing this year alone, concerns about the safety of US Treasury bonds are rising. High yields are not attractive returns but rather a warning sign of market risk.

Taiwan's economy is heavily reliant on exports, and a global market panic can lead to tightened funding and loss of orders, hitting Taiwan’s export sector hard.

Even with the NTD appreciating against a backdrop of a depreciating Southeast Asian dollar, it could result in a double squeeze on profits due to rising raw material and energy prices.

Reports suggest Taiwan may purchase long-term US debt at very low or even zero interest rates to gain exemptions from high tariffs, potentially diverting funds away from industry and innovation investments.

Despite the government’s reassurances, many citizens feel the economic pressures, with closed shops and shut factories painting a grim reality.