Mon Apr 07 01:00:00 UTC 2025: ## Taiwan’s Stock Market Plunges After Trump’s 32% Tariff Announcement; Government Unveils Emergency Measures

**Taipei, Taiwan** – Following President Trump’s announcement of a 32% tariff on Taiwanese goods, sending global markets into turmoil, Taiwan’s stock market experienced a panic sell-off. Fearing a catastrophic market crash, the Financial Supervisory Commission (FSC) today announced three emergency measures aimed at stabilizing the market.

The FSC’s measures, effective April 7th-11th, include:

1. **Expanded Collateral:** Investors will be allowed to use a wider range of liquid assets as collateral to cover margin calls.
2. **Reduced Short Selling:** The daily limit on short selling will be drastically reduced from 30% to 3% of the average daily trading volume over the past 30 days. Exceptions will be made for hedging purposes by securities firms involved in specific financial activities.
3. **Increased Margin Requirements:** The minimum margin requirement for short selling will be increased from 90% to 130%.

Financial expert Mu-Hua Juan expressed relief that the FSC did not implement a limit on daily price fluctuations, stating that such a move would have exacerbated the situation. While Juan expressed support for measures to curb excessive short selling, he also voiced concerns about the impact on future market recovery. He highlighted the need to clarify acceptable collateral and the potential challenges in securing sufficient borrowing capacity.

The measures come after a significant market drop, with the Taiwan Stock Exchange index plummeting below 20,000 points. The announcement follows earlier reports suggesting the FSC had considered a temporary trading halt, a measure deemed too drastic by experts. The impact of these emergency measures on the market remains to be seen.

Read More