Taiwan’s stock market plummeted nearly 10% on Monday following U.S. President Donald Trump’s announcement of new import tariffs. Taiwan Stock Exchange Chairman Sherman Lin indicated that more stabilization policies would be introduced if necessary. The financial regulator announced temporary curbs on short-selling this week to address potential market turbulence. Although semiconductors are not directly affected by Trump’s tariffs, Taiwan’s trade-dependent economy relies heavily on its role in the global electronics supply chain. With a 32% duty imposed, Taiwan was highlighted by Trump as one of the U.S.’s trading partners with a significant trade surplus. To counteract the tariffs’ impact, Taiwan unveiled a T$88 billion ($2.65 billion) support package for affected companies. President Lai Ching-te proposed increasing purchases from and investments in the U.S. to achieve a zero-tariff regime. Despite calls for investor confidence, Goldman Sachs downgraded Taiwan to “underweight,” citing high exposure to U.S. exports and market sensitivity.
— new from Reuters
