In addition to Taiwan, the U.S. Treasury has also placed China, Japan, South Korea, Germany and Switzerland on the list.
The U.S. Treasury Department sharply criticized China's exchange-rate policy on Friday, though it stopped short of labeling the Asian trade giant a currency manipulator.
Since the central bank was reluctant to intervene in recent sessions, the Taiwan dollar appreciated more than 6 percent against the greenback in the first quarter of this year, which sparked an outcry from exports-oriented firms, particularly those in the high-tech sector which had incurred large foreign exchange losses in the three-month period. The latest report's censure of China and other countries-including South Korea and Germany-could be used in the future as a pretext for new tariffs.
He had repeatedly railed against the trade imbalance between the United States and China during his election campaign.
Trump hasn't named China a "currency manipulator".
The Treasury notified Seoul that it was closely monitoring its currency intervention practices.
"The basic message is that Japan needs to expand its domestic demand and one can read this as them telling Japan to import more American goods", said Minami of the Norinchukin Research Institute.
Still, despite that reversal, the report said a decade of holding down the renminbi had imposed "significant and long-lasting hardship on American workers and companies" and left China with the largest trade surplus of any country against the United States - $347 billion a year ago. He publicly retreated from that position after meeting with Chinese President Xi Jinping in Florida last weekend.
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Previous administrations have used three factors to determine if a country is a currency manipulator - a trade surplus with the USA of more than $20 billion; a current-account surplus totaling more than 3% of its gross domestic product; and repeatedly devaluing its currency by buying foreign assets that equals to 2% of output a year.
"Expanding trade in a way that is freer and fairer for all Americans requires that other economies avoid unfair currency practices, and we will continue to monitor this carefully", The Hill quoted Treasury Secretary Steven Mnuchin as saying in a statement.
The report also criticized Japan for failing to do more to stimulate domestic demand and thereby increase sales of US and other foreign goods.
Speaking with the Journal, Trump said he changed his mind because China hadn't been manipulating its currency for months, and that such a move could harm ongoing talks with Beijing on containing the nuclear threat from North Korea.
Trump did say he thought the dollar was "getting too strong" - a comment that sent the USA currency falling, though it subsequently rebounded. Economists say the USA currency could rise further as the Federal Reserve raises interest rates.
"The report won't have an impact on the upcoming Japan-U.S. economic dialogue next week".
"Treasury also places high importance on greater transparency of China's exchange rate and reserve management operations and goals", said the report.
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