On April 6, 2025, Taiwan’s Financial Supervisory Commission (FSC) announced temporary curbs on short-selling to stabilize its stock market following the U.S. imposition of new tariffs under President Donald Trump. The measures, effective from Monday, April 7, through Friday, April 11, limit the number of shares that can be sold short and raise the minimum short-selling margin ratio from 90% to 130%. This response comes as Taiwan’s stock market, closed the previous Thursday and Friday for a holiday, prepares to reopen amid global financial turbulence sparked by Trump’s tariff announcement on Wednesday, April 2.
The U.S. tariffs, which include a 32% duty on Taiwanese goods (excluding semiconductors, a major export), are part of a broader policy targeting countries with large trade surpluses, like Taiwan. The FSC’s move aims to curb potential panic selling and volatility, especially given the expected pressure on the Taiwan dollar and an anticipated outflow of foreign capital. Taiwan, a global leader in semiconductor production led by firms like TSMC, faces a delicate balancing act—its economy relies heavily on trade, yet the tariffs threaten non-chip sectors like electronics and steel. The central bank, bolstered by ample foreign reserves, has signaled confidence in stabilizing the currency, which has already depreciated 0.9% against the dollar this year, while the benchmark stock index is down 7.5% since January.
Global markets have already felt the shockwaves, with the S&P 500 losing $5 trillion in two days after the tariff unveiling. Taiwan’s proactive curbs contrast with its diplomatic approach—President Lai Ching-te offered zero tariffs to the U.S. on Sunday, pushing for talks and pledging increased Taiwanese investment stateside. Critics question whether these short-term financial bandaids can offset the broader economic hit, especially as over 50 countries scramble to negotiate with the Trump administration. What’s your take—will these curbs steady Taiwan’s markets, or are they just a stopgap against a bigger trade storm?
