Taiwan Activates $15 Billion Stabilization Fund Amid Market Crash

Taiwan has activated its $15 billion National Stabilization Fund to support the stock market after significant declines triggered by new U.S. tariffs. Following President Trump's announcement of a 32% tariff on Taiwanese imports, the market dropped nearly 10% on Monday and an additional 4% on Tuesday, reaching a 14-month low. The Finance Ministry noted that the fund, with assets of approximately T$500 billion, is now authorized to intervene in the market to maintain stability amid a strong international panic atmosphere and persistent foreign investor selling. This move marks the ninth use of the fund since its establishment in 2000, which has historically been deployed during various crises, including the COVID-19 pandemic. The government aims to restore investor confidence and mitigate the impacts of the tariff-induced market volatility. The situation reflects ongoing challenges in Taiwan's economic landscape amid heightened tensions with the U.S.