TAIPEI (Taiwan News) — Taiwan’s Consumer Confidence Index dropped to 64.93 in May, hitting a 13-month low as tariff worries undermined economic sentiment, according to a National Central University report published Tuesday.

Professor Wu Ta-jen (吳大任) of the university’s economics department said the double blow of tariff tensions and a stronger currency has eroded public confidence, per CNA. He warned that the export sector is under strain and some manufacturers may relocate operations if the pressure continues.

Among the six components, the sharpest drop came in “stock investment timing,” which plunged 11.82 points to 26.82 – its lowest since May last year. Wu explained that exchange rate pressure and global trade uncertainties have shaken investor sentiment, particularly in Taiwan’s heavily export-dependent industries.

While recent trade agreements between the US and UK and some tariff easing were initially seen as positive, Wu noted the US has launched a global semiconductor probe that could trigger new tariffs affecting Taiwan. The Taiwan dollar’s appreciation in early May has also hurt exporters’ margins, further dampening economic confidence.

Real estate sentiment has also weakened. The index for “real estate purchase timing” fell 1.66 points to 95.19, its lowest level in nearly five years, while “durable goods purchases” slipped to a near four-year low at 97.63.

Wu added that while tariffs do not directly impact housing, the ripple effects on investment and employment could pressure the market. He said many listed firms already operate on thin margins and may struggle under dual pressures of tariffs and currency gains.