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.

Taiwan • Business • 04/09 07:13
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.

On April 9, 2025, President Trump of the United States announced a 104% tariff increase on Chinese goods, leading to turmoil in global financial markets. U.S. stock futures saw a significant drop, with the Dow Jones Industrial Average dropping 778 points, and the Taiwan Stock Exchange dropping a total of 2,837 points over two days. The New Taiwan dollar depreciated to 33.073 dollars, while the euro surpassed $1.1 as the dollar weakened. Asia-Pacific stock markets generally declined, with the Nikkei index falling 3.93%. Market volatility was severe, and investor sentiment became more cautious.

Key Updates

04/09 10:11

In the year 2025, the escalation of the trade war between the US and China caused market turmoil: US Treasury bonds plummeted, bond yields soared, and the stock market and the dollar both fell.

On April 9, 2025, the trade war between the US and China escalated as the United States imposed a 104% tariff on goods from China, and China responded with an 84% retaliatory tariff, leading to turmoil in global financial markets. The US Treasury market experienced a sell-off, with the 10-year Treasury yield breaking past 4.5% and the 30-year surpassing 5%, marking the largest three-day rise since 1982. US stocks and the dollar both declined, and hedge funds unwinding high-leverage basis trades triggered a bond market crash, spreading panic to global bond markets and safe-haven assets. The demand for US Treasuries weakened, and market confidence took a hit.

04/09 09:09

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

On April 9, 2025, China's State Council Information Office released a white paper titled "China's Stance on Various Issues in China-U.S. Economic and Trade Relations," criticizing the United States for its unilateral and protectionist measures, accusing it of violating international trade rules and disrupting the economic and trade relations between China and the U.S. China reiterated that the economic and trade relations between China and the U.S. are mutually beneficial and urged the U.S. to resolve differences through dialogue on equal terms, and stated that if the U.S. escalates its restrictive measures, China will respond with countermeasures.

04/09 09:09

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

U.S. President Donald Trump initiated a global reciprocal tariff policy on April 9, 2025, imposing at least a 10% tariff on imported goods, with tariffs on Chinese goods reaching as high as 104%. This move has triggered global market turmoil, with Wall Street business leaders, such as JPMorgan Chase CEO Jamie Dimon, opposing it and warning of risks such as inflation and investment stagnation. Taiwanese companies are facing challenges like having their export containers rejected. The UK, Japan, Vietnam, India, and Cambodia might quickly reach tariff agreements, which could potentially benefit companies like Nike.

04/09 09:09

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

On April 9, 2025, U.S. President Donald Trump imposed a 104% tariff on Chinese goods and a 32% tariff on goods from Taiwan and other countries, impacting Taiwan's export and retail sectors. Costco's Taiwan branch is under pressure to raise prices on 11 items, and sock manufacturers in Changhua have been notified by American clients to halt shipments, calling on the government to negotiate tax cuts and offer subsidies. The Taiwanese government has assembled a negotiation team to travel to the U.S. for discussions, and the industry is looking forward to concrete relief measures.

04/09 07:13

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

On April 9, President Trump of the United States imposed a 104% tariff on Chinese imports, causing turmoil in global financial markets. The three major U.S. stock indices experienced significant declines, with Dow Jones Industrial Average futures dropping by 785 points at one point, the S&P 500 index falling 115.5 points, and the Nasdaq 100 index dropping 398 points. Panic in the market intensified, with the VIX index soaring to 52.33, marking its highest level since 2020. Investors moved from optimism to selling, reflecting their concerns over the escalating trade war.

04/09 07:13

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.

On April 9, 2025, President Trump of the United States announced a 104% tariff increase on Chinese goods, leading to turmoil in global financial markets. U.S. stock futures saw a significant drop, with the Dow Jones Industrial Average dropping 778 points, and the Taiwan Stock Exchange dropping a total of 2,837 points over two days. The New Taiwan dollar depreciated to 33.073 dollars, while the euro surpassed $1.1 as the dollar weakened. Asia-Pacific stock markets generally declined, with the Nikkei index falling 3.93%. Market volatility was severe, and investor sentiment became more cautious.

04/09 03:38

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.

04/09 02:09

President Trump of the United States levied a 104% tariff on Chinese imports, sparking global market turmoil: U.S. stock markets declined, Apple shares plummeted, and Asian stock markets slipped into a bear market.

On April 9, 2025, President Trump of the United States levied a 104% tariff on Chinese products, further escalating the U.S.-China trade war and leading to global market upheaval. U.S. stocks fell for four straight days, as the S&P 500 index fell below 5,000 points, with Apple's stock price experiencing a cumulative 23% drop. Asian markets were also impacted, with the Kospi index in South Korea entering a bear market and the Nikkei 225 index in Japan plunging more than 1,100 points. The global supply chain faced pressure to restructure, leading companies to adjust their production and logistics strategies. The expansion of production capacity for China's C919 aircraft became a focal point as an alternative in the aviation industry.

04/09 02:09

Trump's New 2025 Tariff Policy Sparks Global Economic Shockwaves: U.S. Hoarding Surge, Asian Exports Suffer, Wall Street Stock Market Plummets

On April 9, 2025, U.S. President Donald Trump initiated the "Reciprocal Tariff" policy, which imposed tariffs ranging from 20% to 50% on 60 countries, including Taiwan, Vietnam, China, and the EU, which caused global market turmoil. American consumers started stockpiling goods, Asian exporting countries suffered significant impacts, and Wall Street experienced a significant downturn. Former U.S. Treasury Secretary Lawrence Summers warned that this policy might lead to an economic recession and urged for its withdrawal. Vietnam proposed allowing duty-free imports of American goods to alleviate the situation.

04/09 01:08

The US's imposition of a 104% tariff on China has led to global market fluctuations, and TSMC is facing heavy penalties due to the Huawei chip investigation.

On April 9, 2025, the United States imposed a 104% tariff on Chinese goods, escalating the US-China trade war and causing global market fluctuations. Chinese A-shares and Hong Kong stocks rebounded due to support from Chinese government funds, while US stocks fell after initially rising at the opening. TSMC is being investigated by the US Department of Commerce for allegedly allowing its chips to be used in Huawei products and may face fines exceeding $1 billion.

Intense Fluctuations in US Stocks: Early Gains Turn to Sharp Losses

On April 8, US time, the Trump administration officially imposed tariffs on Chinese goods, with cumulative tariffs reaching up to 104% on a wide range of products, and emphasized that further measures would be taken if China does not make concessions. This move has led to high market uncertainty, leading to a dramatic reversal in the three major US stock indices.

The S&P 500 index initially surged by 4.1% in early trading, marking the largest single-day gain in recent years, but quickly gave up those gains, closing down 1.6% at 4905.75 points. The Dow Jones Industrial Average rose by 1460 points during the session but ended down 778 points, closing at 37084 points, a decline of 2.05%. The Nasdaq 100 index fell by 405 points, a drop of 2.35%.

US stock futures also declined in tandem. As of the morning of April 9, Eastern Time, Dow futures were down 0.01%, S&P 500 futures were down 0.02%, and Nasdaq futures slightly rose by 0.26%, indicating that the market remains in a highly volatile state.

Taiwan Stocks Plunge 2837 Points in Two Days; National Stabilization Fund Steps In

The Taiwan stock market was affected by the escalating US-China trade conflict, experiencing significant declines for two consecutive days. On April 8, the Taiwan Weighted Index plummeted by 2065.87 points, marking the largest single-day point drop and percentage decline (9.7%) on record. On April 9, it fell by over a thousand points during the session, ending down 772.4 points, with a two-day cumulative decline of 2837 points, falling below the 18000-point mark, ending at 17964 points.

TSMC's stock price fell for two consecutive days, closing at 804 NT dollars on April 9, a decline of over 1%. Market panic spread, leading to margin calls and increased selling pressure from foreign investors, causing many blue-chip stocks to hit their limit down.

In response to the market's severe volatility, the National Stabilization Fund held an emergency meeting on April 8, deciding to initiate the ninth stabilization action, authorizing the use of up to 500 billion NT dollars to stabilize market order.

Asia-Pacific and Chinese Markets Decline in Tandem

Asia-Pacific stock markets generally declined. Japan's Nikkei 225 index dropped by over 1300 points during the session, a decline of nearly 4%, closing down 3.93%, falling below the 32000-point mark. South Korea's KOSPI index fell by over 1%, while Australia's S&P/ASX 200 index and Singapore's STI index fell by 1.8% and 2.4%, respectively.

In the Chinese market, the Shanghai Composite Index fell by 1.3%, while the Shenzhen Component Index and the ChiNext Index fell by 2.7%. Hong Kong's Hang Seng Index fell by 3.1%, falling below the 20000-point mark, closing at 19494 points. Apple-related stocks performed poorly, with BYD Electronic falling by over 5% and Cowell Electronics falling by over 7%.

Currency Market Volatility: TWD Depreciates, Euro Breaks Above $1.1

In the currency market, the US dollar index weakened due to increased market risk aversion, falling by about 0.5% in early trading on April 9, with a cumulative decline of about 0.7% since Trump announced the tariffs on April 2. The Taiwan dollar depreciated against the US dollar, temporarily closing at 33.073 NT dollars, a depreciation of 6.6 cents, hitting a new low since September 2023, with a trading volume of 781 million US dollars.

The euro, boosted by the weaker US dollar and stable German political news, broke above the $1.1 mark, trading at 1.0956, a rise of 0.4%. Safe-haven currencies like the yen and Swiss franc also strengthened, with the yen appreciating by 1.1% against the US dollar, trading at 146.27, and the Swiss franc appreciating by 1.3%, trading at 0.8480.

The offshore yuan against the US dollar once fell below 7.42, hitting a historical low, before rebounding to 7.38. Whether the People's Bank of China will further intervene in the foreign exchange market has become a focus of market attention.

Commodity Market: Gold Rises, Oil and Copper Prices Fall

Safe-haven demand pushed up gold prices, with spot gold rising by 0.8%, trading at $3007.7 per ounce, and June gold futures rising by 1.2%, trading at $3011. Silver futures and platinum also rose in tandem.

Oil and industrial metals fell due to the uncertain demand outlook caused by the escalating trade war. Brent crude futures fell by 1.53%, trading at $63.23 per barrel; West Texas crude futures fell by 1.10%, trading at $60.03 per barrel. Copper prices have cumulatively fallen by nearly 10% since Trump announced the tariffs.

References

People Also Ask...

faq

After President Trump raised tariffs, the Taiwanese stock market fell by 2,837 points over two days. The National Financial Stabilization Fund stepped in to support the market. Is this going to affect my investments?

faq

What are the long-term effects of Trump's tariff policies on the global economy?

faq

Does the action by Taiwan's National Stabilization Fund this time affect the investors in our community?