Taiwan Stocks Enter Bear Market After U.S. Tariffs Hit
2025-04-07 02:52
By
Farida Husna
1 min. read
Taiwan’s benchmark Taiex index tumbled nearly 10% to 19,236 on Monday, pushing its losses past 20% from the July peak and officially entering bear market territory.
The sharp drop came in response to new U.S.
tariffs.
Shares of major exporters TSMC and Foxconn both plunged near 10%, triggering the exchange’s circuit breakers.
While semiconductors were not directly targeted by President Trump’s latest tariffs, Taiwan’s trade-dependent economy remains deeply embedded in the global electronics supply chain, from smartphones to automobiles.
In response, Taiwan’s stock exchange signaled that more stabilization measures might be rolled out if needed.
On Sunday, the top financial regulator imposed a temporary ban on short-selling for the week to curb volatility.
Taiwan, hit with a 32% tariff, was singled out by Trump for its large trade surplus.
President Lai Ching-te announced plans to boost purchases from and investment in the U.S., aiming for a future zero-tariff agreement.