Taiwan Stocks Fall Sharply as Stabilization Efforts Loom
9 April 2025 路 Uncategorized 路
Source: 路 https://finance.technews.tw/2025/04/07/national-security-fund-on-standby-to-rescue-the-stock-market/
US President Donald Trump鈥檚 imposition of reciprocal tariffs has triggered a downturn in global stock markets. Today, Taiwan's market experienced an unprecedented drop of 2,065.87 points鈥攖he largest single-day decline in its history.
The National Security Fund (NSF) indicated it may convene an emergency committee to discuss domestic and international economic conditions and strategies for maintaining investor confidence and stabilizing Taiwan鈥檚 capital markets.
According to a press release from the Ministry of Finance, President Trump's administration recently announced new tariff policies that include baseline tariffs of 10% on most trading partners globally, as well as reciprocal tariffs targeting specific countries like Taiwan with an additional 32% levy.
The ministry noted these measures have caused significant volatility in international stock markets; over three to four days, the Dow Jones Industrial Average fell by a cumulative total of 9.26%, while the S&P 500 and NASDAQ indices dropped cumulatively by 10.53% and 11.44%, respectively. The Philadelphia Semiconductor Index experienced an even steeper decline of 16.74%. Given Taiwan鈥檚 closely linked industrial structure with the US market, its capital markets face short-term volatility, particularly those connected to American markets.
To address this situation, the Taiwanese government has initiated a cross-ministerial response mechanism focused on ensuring industry competitiveness and export momentum while also implementing measures for financial stability. The Executive Yuan allocated NT$88 billion in special funds targeting industries most affected by tariffs鈥攕uch as electronics and steel鈥攖o provide financial support and assistance with sector upgrades.
Furthermore, President Tsai Ing-wen has outlined principles and strategies for negotiations with the US, including expanding procurement from America, eliminating non-tariff trade barriers, resolving issues related to high-tech product export controls and origin labeling. The government will vigorously negotiate fair treatment with the United States; it is confident that Taiwan鈥檚 enterprises' resilience and innovative capabilities鈥攃ombined with full governmental support鈥攃an overcome these challenges.
In response to recent market fluctuations, financial regulators have announced measures aimed at stabilizing the situation.
The NSF stated that while short-term volatility may be unavoidable given current circumstances, underlying fundamentals will eventually prevail. It urged investors to rationally assess available information and prudently navigate this period of turbulence within Taiwan鈥檚 stock market.
It also indicated its intention to closely monitor domestic and international financial conditions and is not ruling out convening an emergency meeting to discuss economic situations both domestically and internationally, as well as corresponding strategies aimed at maintaining investor confidence and stabilizing Taiwan's capital markets.
(Writer: Zhang Ai; Image source: Shutterstock)
The National Security Fund (NSF) indicated it may convene an emergency committee to discuss domestic and international economic conditions and strategies for maintaining investor confidence and stabilizing Taiwan鈥檚 capital markets.
According to a press release from the Ministry of Finance, President Trump's administration recently announced new tariff policies that include baseline tariffs of 10% on most trading partners globally, as well as reciprocal tariffs targeting specific countries like Taiwan with an additional 32% levy.
The ministry noted these measures have caused significant volatility in international stock markets; over three to four days, the Dow Jones Industrial Average fell by a cumulative total of 9.26%, while the S&P 500 and NASDAQ indices dropped cumulatively by 10.53% and 11.44%, respectively. The Philadelphia Semiconductor Index experienced an even steeper decline of 16.74%. Given Taiwan鈥檚 closely linked industrial structure with the US market, its capital markets face short-term volatility, particularly those connected to American markets.
To address this situation, the Taiwanese government has initiated a cross-ministerial response mechanism focused on ensuring industry competitiveness and export momentum while also implementing measures for financial stability. The Executive Yuan allocated NT$88 billion in special funds targeting industries most affected by tariffs鈥攕uch as electronics and steel鈥攖o provide financial support and assistance with sector upgrades.
Furthermore, President Tsai Ing-wen has outlined principles and strategies for negotiations with the US, including expanding procurement from America, eliminating non-tariff trade barriers, resolving issues related to high-tech product export controls and origin labeling. The government will vigorously negotiate fair treatment with the United States; it is confident that Taiwan鈥檚 enterprises' resilience and innovative capabilities鈥攃ombined with full governmental support鈥攃an overcome these challenges.
In response to recent market fluctuations, financial regulators have announced measures aimed at stabilizing the situation.
The NSF stated that while short-term volatility may be unavoidable given current circumstances, underlying fundamentals will eventually prevail. It urged investors to rationally assess available information and prudently navigate this period of turbulence within Taiwan鈥檚 stock market.
It also indicated its intention to closely monitor domestic and international financial conditions and is not ruling out convening an emergency meeting to discuss economic situations both domestically and internationally, as well as corresponding strategies aimed at maintaining investor confidence and stabilizing Taiwan's capital markets.
(Writer: Zhang Ai; Image source: Shutterstock)