Taiwan’s stock market plunged almost 10% on Monday, marking its steepest drop in over a year as investors reacted to new U.S. import tariffs announced by President Donald Trump last week. The dramatic selloff came after a two-day market closure, with investors facing a wave of uncertainty and fear over escalating trade tensions.
The benchmark Taiwan index opened sharply lower and quickly hit its lowest point since early 2023. Key tech giants, including chipmaker TSMC and electronics manufacturer Foxconn, both slid close to 10%, triggering the market’s circuit breaker, which halts trading when losses hit a certain threshold.
In response to the market turmoil, Taiwan’s top financial regulator imposed a temporary ban on short-selling through the week to curb excessive volatility. This move aims to stabilize investor sentiment and cushion the market from further panic-driven declines.
Taiwan Stock Exchange Chairman Sherman Lin assured the public that the exchange would remain flexible and work closely with regulators to introduce further stabilization measures if necessary. He emphasized the inevitability of Taiwan being affected by global economic pressures but urged investors to remain confident in the strength of Taiwanese businesses and the government's ability to respond.
Lin also stated that the exchange is prepared to adapt to rapidly changing market conditions throughout the week and will act swiftly to mitigate instability triggered by the new U.S. trade policies.
The sudden plunge underscores Taiwan’s vulnerability to global trade shifts, particularly due to its heavy reliance on tech exports. Analysts suggest the market may continue to face turbulence as investors reassess risk amid ongoing trade disputes between the U.S. and key Asian economies.


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