On April 7, Taiwan’s stock market witnessed its most significant single-day drop in history, with shares plummeting over 2,000 points. This sharp decline was attributed to the impact of U.S. President Donald Trump’s recent tariff announcements, causing investor confidence to falter.

sisma Travel Electronics Organiser Carrying Case for Power Cords Power Bank Earbuds Hard Drives Memory Cards Laptop Adapte… | $15.59

Of the 1,034 stocks traded on the Taiwan Stock Exchange (TWSE), a staggering 945 experienced a maximum 10 percent decrease, including major player Taiwan Semiconductor Manufacturing Co. (TSMC). Concerns loomed over the potential disruption of global trade flows due to the newly imposed tariffs.

MFAUCAZB 40PCS Double Compartment Condiment Container with Lids, 2 Compartment Snack Containers, Reusable Plastic Sauce Co… | $21.86

The TWSE’s benchmark index, the Taiex, closed at 19,232.35, marking a 9.7 percent drop, the lowest level seen since August 2024. This historic plunge surpassed previous records, reflecting the severity of the market reaction to the tariff-related uncertainties.

Telecom Equipment (Telecom Modules Book 10) | $7.17

Despite the substantial sell-off, the total turnover for the day stood at NT$147.295 billion (US$4.44 billion), the lowest in over two years. Analysts noted that many investors refrained from purchasing stocks, anticipating further losses in the wake of the tariff shocks.

Understanding Semiconductors: A Technical Guide for Non-Technical People | $43.99

President Trump’s announcement of a baseline 10 percent tax on imports triggered a chain reaction, with countries like Taiwan facing a 32 percent tariff increase. This unexpected development, especially following TSMC’s recent investment commitment in the U.S., caught the market off guard.

The ultimate guide to financial services PR: Maximising value from your PR investment | $14.29

TSMC, a key heavyweight in the market, saw its shares plunge by 10 percent, contributing significantly to the Taiex’s decline. The electronics sector, including semiconductor companies like MediaTek Inc. and United Microelectronics Corp., also bore the brunt of the market turmoil.

Food Price Policy in an Era of Market Instability: A Political Economy Analysis | $74.67

Non-tech giants such as Formosa Plastics Corp. and Nan Ya Plastics Corp. faced heavy selling pressure, underscoring the broad impact of the tariff concerns across various industries. The financial sector, represented by companies like Fubon Financial Holding Co., also experienced notable losses.

Amid the market turmoil, telecom stocks like Chunghwa Telecom Co. displayed relative resilience compared to other sectors. However, overall market sentiment remained bearish, with analysts predicting further volatility in the coming days as the global market landscape evolves.

In response to the heightened market instability, measures to curb short selling were implemented, with foreign institutional investors buying a net NT$16.82 billion in shares on Monday. While efforts were made to stabilize the market, the prevailing uncertainty surrounding the tariffs continued to weigh on investor sentiment.

Looking ahead, market observers anticipate continued turbulence as investors navigate the evolving trade dynamics and their implications on the global economic landscape. The unprecedented scale of the market decline underscores the profound impact of external geopolitical factors on Taiwan’s financial markets.