Global Markets React to US Trade Tensions: Stocks Ride the Rollercoaster

Trade War Escalates as US, China, and EU Exchange Tariffs, Sending Markets into Turmoil

Global markets are experiencing heightened volatility following the implementation of retaliatory tariffs. The situation stems from the ongoing trade dispute initiated by the United States. This wave of actions has created substantial uncertainty for investors worldwide, particularly affecting Taiwan.

On the 9th of the month, reciprocal tariffs, imposed by the United States, took effect. China responded with an announcement, raising its retaliatory tariffs on US goods to a substantial 84%. This escalation has further intensified global trade tensions. The European and Asian stock markets have shown a negative response.

In the US, early trading saw continued market fluctuations. The Dow Jones Industrial Average and the S&P 500 Index exhibited fluctuating performance. The NASDAQ Composite Index and the Philadelphia Semiconductor Index, however, showed relative strength compared to the others. Taiwan Semiconductor Manufacturing Company (TSMC) ADRs experienced a slight dip, approximately 0.2%.

Shortly after the United States implemented 104% import tariffs on Chinese goods, China declared that it would impose 84% tariffs on US products, starting the 10th. Furthermore, the European Union announced its initial retaliatory measures against the US, scheduled to begin on the 15th.