The intensification of the US-China trade war has caused global stock market volatility: the Nikkei plummeted 1,300 points, Taiwan's stock index fell below 18,000, and US stocks ended the day in the red across the board.

On April 9, 2025, President Trump of the United States imposed a 104% tariff on Chinese goods, and China retaliated with a 34% tariff, escalating the trade tensions and causing turmoil in global stock markets. The Nikkei index plummeted 1,304 points, the South Korean KOSPI index hit a six-month low, Taiwan's stock market dropped below 18,000 points, and TSMC's stock price experienced volatility. All four major U.S. stock indices closed lower, with the S&P 500 falling below 5,000 points. Global markets are facing systemic pressure due to tariff policies.

US-China Tariffs Officially Take Effect, Trade War Fully Escalates

At 12:01 AM on April 9 US time (12:01 PM Taiwan time), the Trump administration's imposition of reciprocal tariffs on Chinese goods, resulting in a total tax rate as high as 104%, officially took effect. This policy stems from an executive order signed by Trump on April 2, which, under the International Emergency Economic Powers Act (IEEPA), imposes a new 34% tariff on Chinese goods, adding to the existing 20% and 50% rates, resulting in an unprecedented high tax burden.

In response, China announced its third round of retaliatory tariffs on April 4, imposing a 34% tariff on all US imports, effective April 10. China's Ministry of Commerce emphasized its commitment to "fight to the end" and has filed a complaint with the World Trade Organization (WTO).

Asian Stock Markets Hit Hard: Nikkei Plummets, Korean Stocks Enter Bear Market

Japan's stock market was immediately hit hard at the opening on the 9th, with the Nikkei 225 index plunging 1,304.37 points, a drop of 3.95%, reaching a low of 31,708.21 points, the lowest since August 2024. The TOPIX index also fell by 2.93%, closing at 2,360.86 points. The yen appreciated against the dollar to around 145 yen, further squeezing export companies' profits and exacerbating market selling pressure.

Similarly, South Korea's KOSPI index plummeted, dropping 1.11% in early trading to 2,308.39 points, and closing down 0.88% at 2,313.64 points, the lowest since November 2023. The won fell to 1,487.6 won against the dollar, the weakest level since 2009. Foreign investors continue to withdraw from Korean stocks, posing severe challenges to the export-oriented economy.

Taiwan Stocks Fall Below 18,000, National Stabilization Fund Steps In

Taiwan's stock market opened on the 9th with a drop of 122 points at 18,337 points, briefly falling below the 18,000 mark, reaching a low of 17,172 points, and closing at 18,459.95 points, a sharp drop of 772.40 points, or 4.02%. The three major institutional investors collectively sold NT$48.564 billion, with foreign investors selling NT$34.183 billion.

TSMC (2330) experienced significant volatility, opening at NT$809, dropping to NT$797, then rebounding to NT$826, and closing at NT$816. Rumors in the market suggest that TSMC's chip manufacturing for China's Sophgo may violate US export control regulations, potentially facing a US$1 billion fine, further impacting investor confidence.

The National Stabilization Fund held an emergency meeting on the 8th, announcing its official intervention with NT$500 billion, primarily targeting large-cap stocks to stabilize market sentiment.

US Stock Indices Close in the Red, S&P Falls Below 5,000 Points

On the 8th, US stock markets experienced a strong intraday rebound, with the Dow Jones Industrial Average rising over 1,400 points, but concerns over tariff policies resurfaced, leading to a broad decline by the close. The Dow Jones fell 320.01 points to 37,645.59 points; the Nasdaq fell 335.35 points to 15,267.91 points; the S&P 500 fell 79.48 points to 4,982.77 points, falling below 5,000 points for the first time in nearly a year; the Philadelphia Semiconductor Index plunged 132 points to 3,562.94 points, a drop of 3.57%.

Technology stocks were significantly impacted, with major tech companies like Apple, Nvidia, and Meta generally falling over 3%. TSMC ADR fell 6.72%, closing at $166.

Reciprocal Tariffs Affect 86 Countries Globally, Supply Chain Restructuring Pressure Intensifies

According to the US Treasury Department, the reciprocal tariff policy covers 86 countries worldwide, imposing import tariffs of 32%, 24%, and 25% on Taiwan, Japan, and South Korea, respectively. Southeast Asian countries like Vietnam, Cambodia, and Thailand also face tariffs as high as 36% to 49%, rendering the previous "country of origin washing" strategy unsustainable.

US Treasury Secretary Besent stated that nearly 70 countries have sought to negotiate tariffs with the US, but no agreements have been reached with any country before the reciprocal tariffs officially take effect.

The intensification of the US-China trade war has caused global stock market volatility: the Nikkei plummeted 1,300 points, Taiwan's stock index fell below 18,000, and US stocks ended the day in the red across the board.

Key Updates

China Publishes White Paper on China-US Economic and Trade Relations: Criticizes US Unilateral Policy, Urges Dialogue to Resolve Disputes

Trump's New 2025 Tariff Policy Sparks Global Business Community Backlash: Emerging Inflation Risks and Logistics Crisis

Impact of US Tariff Policy on Taiwan: 11 Products Could See Price Increases, Sock Industry Calls for Government Subsidies

Trump announced a 104% tariff on Chinese goods, leading to wild fluctuations in US stocks and causing the volatility index to soar.

Trump announces a 104% tariff increase on China, sparking global market turmoil: U.S. stock futures take a nosedive, Taiwanese stocks take a hit, and the New Taiwan dollar weakens.