TAIPEI (Taiwan News) — Taiwan stocks closed lower on Friday after the US proposed a 20% preliminary tariff on Taiwanese goods, rattling investors before markets steadied later in the session.
The tariff is slated to take effect on Aug. 7. Although the government stated that the rate is not yet final and talks are ongoing the announcement unsettled investors in early trading, according to CNA and CTEE.
The Taiwan Stock Exchange Capitalization Weighted Stock Index, or TAIEX, fell 108.14 points to close at 23,434.38, after initially dropping more significantly at the opening. Market turnover totaled NT$392 billion (US$13 billion), with losses easing as gains in financial and small-cap stocks helped pare earlier losses.
TSMC slipped 1.72% to NT$1,140, while MediaTek declined 1.46% to NT$1,350. Foxconn bucked the trend, gaining 1.97% to NT$181.5 after unveiling a partnership with Teco Electric and Machinery to pursue opportunities in artificial intelligence data centers.
Delta Electronics also rose 3.7% to NT$588. Ase Technology Holdings ended flat, and UMC lost 1.2%.
Electronic-grade glass fiber drew strong investor interest. Glass fiber cloth, produced by weaving fiberglass yarn, is a key component in AI server production.
Fulltech Fiber Glass, Taiwan Glass, and Nan Ya Plastics topped trading volumes. Fulltech edged up 0.37% to NT$54.80 with 258,959 lots traded (each lot represents 1,000 shares).
Taiwan Glass gained 4.6% to NT$25 with a volume of 258,172 lots. Nan Ya Plastics dropped 2.81% to NT$39.80 despite a turnover of 146,917 lots.
The printed circuit board sector remained strong. Elite Material reached an intraday high of NT$1,165 before closing up 1.36% at NT$1,120.
Several others, including Taliang Technology, Key Ware Electronics, Gia Tzoong, and Dynamic Holding, hit their daily upper price limits. PCBs are crafted with intricate copper wiring to connect components, forming the foundation of most electronic circuits.
Taishin Mainstream Fund Manager Huang Chien-yun (黃千雲) noted that the US tariff announcement has brought some clarity and allowed investors to better assess future trends. Both Taiwanese and US markets have rebounded since the April 2 tariff-related selloff, with the TAIEX climbing more than 6,000 points since then.
Huang added that as companies begin reporting their earnings, some may reveal losses from currency fluctuations — especially given the recent volatility in foreign exchange rates. This could lead to a short-term slowdown in stock momentum as investors reassess company performance.
Meanwhile, a new US legislative package known as the “One Big Beautiful Bill Act,” is expected to have longer-term effects on the business climate. Huang believes it could influence corporate strategies and profit forecasts from the second half of this year through 2026, adding another layer of uncertainty and opportunity to global market trends.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
