TAIPEI (TVBS News) — Taiwan's stock market experienced volatile trading Friday (Aug. 1) following the White House announcement of a 20% reciprocal tariff rate targeting the island. Government officials stressed the temporary nature of this assessment while pledging continued negotiations for improved terms. The Taiwan Stock Exchange (TAIEX) plummeted 374 points during morning sessions before recovering to close down 108.14 points at 23,434.38.
Electronics stocks on the TAIEX concluded with a modest 0.67% decline while financial sector shares gained 0.63% during the session. Artificial intelligence-related equities, concentrated in computer and peripheral equipment categories, posted a 0.34% advance despite broader market uncertainty. Over-the-Counter securities outperformed with a solid 0.88% increase, demonstrating investor selectivity amid tariff concerns.
Major technology companies showed mixed results with Taiwan Semiconductor Manufacturing Company TSMC (台積電) declining 1.72% to NT$1,140 (around US$38.03). Hon Hai Precision Industry (鴻海) gained 1.97% to NT$181.5 (around US$6.05). MediaTek (聯發科) dropped 1.46% to NT$1,350 (around US$45.03), while Delta Electronics (台達電) surged 3.7% to NT$588 (around US$19.62).
Taiwan's temporary 20% tariff assessment exceeds rates imposed on regional competitors Japan and South Korea, both facing 15% levies. President Lai Ching-te (賴清德) highlighted negotiation progress, emphasizing the reduction from April's proposed 32% rate to the current 20% level. The president noted that America has not yet published findings from its ongoing investigation into Taiwan's semiconductor, information technology, and electronic components sectors. ◼ (At time of reporting, US$1 equals approximately NT$29.978)
