Taiwan Stock Market Closed for Qingming Festival Holiday
Rising Fears of a 'Black Monday'
Executive Yuan Convenes High-Level Meeting
Taiwan, which has been hit with a high reciprocal tariff rate of 32% imposed by the Donald Trump U.S. administration, is deeply concerned about a 'Black Monday' scenario including a stock market crash and is struggling to devise countermeasures.
According to Taiwanese media such as United Daily News and China Times on the 6th, Cho Jung-tai, Premier of Taiwan's Executive Yuan, held a high-level meeting the previous day with the central bank governor and the finance minister to receive reports on countermeasures against the tariff shock from the U.S. They noted that the U.S. reciprocal tariff announcement had a negative impact on global stock markets and believed that the Taiwan stock market, which opens on the 7th, could also be shaken. Premier Cho emphasized, "We must prepare mentally and brace for the shock." The Taiwan stock market was closed on the 3rd and 4th due to the Qingming Festival holiday.
United Daily News reported that although there was no official directive for the intervention of Taiwan's National Financial Stabilization Fund at this meeting, the conditions for intervention were met given the concerns about a stock market crash. The stabilization fund, worth 500 billion Taiwan dollars (approximately 22 trillion Korean won), is ready to hold an emergency meeting at any time, with the possibility of a meeting as early as the 7th.
Premier Cho had previously stated at a press conference on the 4th that the electronics and steel industries were expected to be directly hit by the U.S. reciprocal tariffs and expressed his intention to support Taiwanese companies with 88 billion Taiwan dollars (approximately 3.88 trillion Korean won).
Meanwhile, Taiwan President Lai Ching-te held a roundtable meeting on the 5th by inviting representatives of the information and communication technology (ICT) industry to the presidential office, according to the Taiwan Presidential Office. Attendees included Foxconn Chairman Liu Yang-wei, Compal Chairman Hsu Sheng-hsiung, Wistron CEO Lin Jen-shiun, TEEMA Chairman Lee Sze-chin, Pegatron Chairman Tong Tzu-hsien, Acer founder Stan Shih, and TSMC Vice President Hou Yung-ching.
United Daily News quoted sources saying, "The government has cards to negotiate with the U.S., but industry representatives agreed there is no need to rush to disclose them." Additionally, the Executive Yuan has dispatched economic and trade officials to the U.S. and is reportedly reviewing countermeasures such as tariff reductions, expanded investment in the U.S., and easing of non-tariff barriers.
U.S. President Donald Trump announced on the 4th (local time) reciprocal tariffs against trading partners worldwide, including Taiwan (32%). President Trump is also signaling tariffs on Taiwan's largest export, semiconductors.
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