- Chinese and Taiwanese markets plunged due to US tariffs.
- China’s market dropped by 10%; Taiwan’s fell 9.8%.
- Ripple effects caused market losses across Asia.
Chinese and Taiwanese stock markets saw a sharp decline on April 7, 2025, following new tariffs from the US, contributing to regional instability.
The steep declines of the Chinese and Taiwanese markets highlight the vulnerability to US protectionist policies, triggering wider economic concerns.
China’s stock market dropped by 10% at opening, and Taiwan’s Taiex fell 9.8% due to US tariffs. This event is compared to past financial crises, as analysts note concerning similarities with the 2008 global financial crisis. Panic selling spread, with Hong Kong and Japan suffering sharp losses.
Donald Trump’s Tariffs and Their Global Impact
Donald Trump’s “Liberation Day” tariffs sparked this global trade conflict, with leaders like Taiwan Premier Cho Jung-tai urging preparation for market impacts. Taiwan Semiconductor fell 10%, affecting the broader index significantly.
The economic fallout spurred fears of a rippling effect in Asia and beyond. Financial markets globally could experience elevated volatility, impacting sectors dependent on stable trade relations.
A significant amount of wealth, specifically $9 trillion, was estimated to have vanished from equity markets. Taiwan Semiconductor’s US ADRs plunged, heightening economic concerns. Intervention discussions are ongoing in Taiwan to stabilize their currency.
“The breadth of the stock market crash across Asia is alarming, particularly in China and Taiwan where indices have seen significant declines.” – Social Media Report, @spectatorindex
Based on historical precedents, such economic tensions often lead to market downturns. Regulatory measures and potential industry shifts may alter economic landscapes long-term. Global markets are on edge, with institutional and technological adaptations anticipated.
