Taiwan’s stock market experienced a notable increase on April 15,2025, with the Taiex index rising 344.58 points, or 1.77%, to close at 19,857.67.

This rise followed a rally in United States markets after the White House announced tariff exemptions on electronics imports, including smartphones and computers.

The day’s turnover reached NT$295.94 billion (US$9.12 billion), primarily driven by gains in electronics and semiconductor stocks. Taiwan Semiconductor Manufacturing Co. (TSMC) increased by 1.39% to close at NT$877.00 (US$27.19), contributing approximately 95 points to the Taiex’s rise.

🔗 Source: Focus Taiwan

🧠 Food for thought

1️⃣ Taiwan’s economic trajectory shows increasing vulnerability to U.S. trade policies

The historic 9.7% single-day stock market plunge (2,065.87 points) on April 7 following Trump’s 32% tariff announcement demonstrates Taiwan’s acute sensitivity to U.S. trade decisions 1.

This vulnerability has deep structural roots: Taiwan’s export dependency on the U.S. has evolved significantly, with the U.S. share of Taiwan’s exports falling from 23.42% in 2000 to 12.21% in 2015, while trade with China rose dramatically from 12.74% in 1990 to 41.78% in 2010 2.

Despite this rebalancing, Taiwan’s current exports to the U.S. still total $111.4 billion (23.4% of total exports), explaining the government’s non-retaliatory approach and focus on negotiating better terms rather than imposing countermeasures 3.

The disproportionate impact on Taiwan’s economy compared to other targeted countries reflects its high concentration in electronics and semiconductors, precisely the sectors under scrutiny in Washington’s evolving tariff strategy.

President Lai’s five-point response strategy, including enhanced trade relations and removal of non-tariff barriers, represents Taiwan’s attempt to navigate this precarious position through deeper U.S. integration rather than confrontation 3.

2️⃣ Semiconductor industry faces distinctive vulnerabilities despite electronics exemptions

The Taiwanese government’s decision to simulate the impact of potential U.S. semiconductor tariffs highlights a critical concern: current exemptions for electronics like smartphones don’t necessarily extend to the chips inside them 4.

TSMC’s 1.39% stock rise mentioned in the news article reflects market optimism, but deeper uncertainty remains, as Trump’s administration is explicitly investigating semiconductor imports as a precursor to potential targeted tariffs 5.

This distinction between end products and components creates a complex challenge for Taiwan’s semiconductor industry, which forms the backbone of the country’s high-tech economy. While phones might be exempt, the chips manufactured by TSMC and others remain vulnerable.

Taiwan’s initiative to simulate tariff impacts on semiconductors reflects the government’s recognition that this sector requires special attention and protection strategies beyond general market stabilization measures 4.