Mon Apr 07 01:00:00 UTC 2025: ## Trump’s Reciprocal Tariffs Trigger Global Stock Market Crash; Taiwan’s Index Plunges

**Taipei, Taiwan** – President Trump’s announcement of reciprocal tariffs on multiple countries sent shockwaves through global markets, triggering a massive sell-off. The US stock market plummeted for two consecutive trading days, wiping out approximately $6.6 trillion in market value. Taiwan’s stock market, after a long holiday weekend, suffered its worst single-day drop in history on April 7th, falling over 2,000 points – surpassing the previous record set in August 2023.

The Taiwan Stock Exchange (TWSE) opened at 20,153 points before plunging below 19,000, ultimately bottoming out at 19,212 points. This represents a staggering 2,085-point drop, impacting nearly every sector. TSMC, Taiwan’s bellwether semiconductor manufacturer, immediately hit its daily limit down, closing at 848 NTD, down over 9%. The Taiwan Futures Exchange also hit its daily limit down. Over 1600 stocks hit their daily limit down.

The high tariffs, particularly the 32% levy on Taiwanese goods (with even higher rates imposed on goods from Vietnam, India, and China), have significantly impacted investor sentiment. Experts warn of potential negative consequences for corporate profits and consumer spending, with a Goldman Sachs report predicting a 2-4% EPS decrease by 2025 under a 10% tariff increase scenario. Concerns about Taiwan’s already weakening economy further exacerbated the situation.

While the exemption of chips from tariffs offers some relief to TSMC, making it a potential market stabilizer, many analysts advise caution. Questions remain about TSMC’s substantial US investment, potential technology leakage, and the impact on profitability. Analysts at Yongfeng Investment Consulting downgraded their corporate profit forecast to 8.9% from 15% and estimate the weighted index bottom near 18,600 points, advising investors to “preserve cash and reduce risk.” The situation evokes memories of the 1920s, when US tariffs contributed to economic downturn.

The crash in Taiwan mirrored the global downturn. Japan’s Nikkei 225 index fell over 8%, and South Korea’s KOSPI dropped 4.8%. The severity of the situation prompted the TWSE to hold an emergency press conference, assuring investors that the market will remain open and that stabilizing measures will be implemented if necessary. Government intervention through national stabilization funds is also anticipated. The incident further strained already tense US-Taiwan relations, highlighting the challenges faced by Taiwan’s tech giants amidst escalating trade tensions. News also broke concerning potential mergers between Taiwanese semiconductor companies and their US counterparts, further fueling market uncertainty.

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