Taiwan’s stock market fell significantly on Thursday, reflecting investor concerns after U.S. President Donald Trump announced a new 25% tariff on imported automobiles and car parts, escalating global trade tensions.
The Taiwan Stock Exchange Weighted Index (TAIEX) closed down 308.53 points, or 1.39%, at 21,951.76. Turnover was NT$264 billion (US$8 billion).
Technology stocks led the downward momentum, with semiconductor giant TSMC falling 2.24% to NT$958 following overnight declines in its American depositary receipts (ADRs) traded in the U.S. MediaTek dropped 1.98% to NT$1,485, while Foxconn slid 3.31% to NT$160.5.
Artificial intelligence-related stocks also came under pressure, mirroring losses in major U.S. chip companies Nvidia and AMD. Quanta Computer lost over 2.5%, and Wistron fell more than 1.5%.
However, network equipment firm Microelectronics Technology staged a sharp turnaround after a recent slide due to trading restrictions. After opening at the daily limit-down price of NT$11.75, shares rebounded strongly, closing limit-up as investors sought undervalued opportunities.
Copper-related stocks rallied amid rising copper prices on the London Metal Exchange, as investors moved toward safer assets. First Copper Technology surged more than 6%, hitting an all-time high of NT$48.5.
Electrical equipment makers also benefited from Taiwan Power Company’s decentralized grid initiative, with Jung Shing Wire rising by the daily limit to exceed NT$20, and Everton Wire Cable gaining more than 2%.
Hua Nan Securities Investment Management Director Chu Hsiang-sheng attributed the overall market decline to Trump’s auto tariff announcement, noting investor caution ahead of potential reciprocal tariffs slated for April 2. Foreign investors withdrew over NT$30 billion from Taiwan equities, further pressuring the market.
Chu said future market performance hinges on upcoming U.S. trade policy decisions, especially if tariffs expand to include Taiwan’s critical semiconductor sector.
