FX.co ★ Taiwan Stocks Enter Bear Market After U.S. Tariffs Hit

The Taiex index, Taiwan's main stock benchmark, plummeted almost 10% to 19,236 on Monday. This steep decline pushed the index over 20% below its July high, officially marking its entry into a bear market. The dramatic drop was triggered by the introduction of new U.S. tariffs. Notably, shares of key exporters such as TSMC and Foxconn suffered nearly a 10% decrease, activating the exchange's circuit breakers. Although President Trump's latest tariff measures did not specifically target semiconductors, Taiwan’s economy, heavily reliant on trade, remains intricately linked to the global electronics supply chain encompassing products from smartphones to cars. In light of these developments, Taiwan’s stock exchange indicated potential additional stabilization measures if required. On Sunday, the principal financial regulator enacted a temporary prohibition on short-selling for the upcoming week to help mitigate market volatility. Facing a 32% tariff, Taiwan was directly identified by Trump due to its substantial trade surplus. In response, President Lai Ching-te disclosed plans to enhance both procurement from and investment in the U.S., with the goal of achieving a future zero-tariff agreement.