Taiwan’s Financial Supervisory Commission (FSC) announced temporary restrictions on short-selling to address market instability following US tariffs announced by President Trump.

The measures, effective Apr. 7 to Apr. 11, include raising the short-selling margin ratio from 90% to 130% and limiting the number of shares that can be sold short.

The FSC called the tariffs a source of “major uncertainties” for Taiwan’s capital market and said it will monitor developments closely.

Taiwan’s stock market (.TWII) has been closed since last Apr. 3, for a holiday and will reopen on Apr. 7.

Global markets have dropped sharply since the tariff news, with the S&P 500 losing $5 trillion in two days.

Taiwan, a major chip producer, is hit with a 32% tariff under the new US trade plan.

Analysts expect pressure on the Taiwan dollar and possible foreign capital outflows when trading resumes. The central bank is prepared to stabilize the currency with its foreign reserves if needed.