TAIPEI (Reuters) – Changes in policy promised by the newly inaugurated Trump administration foreshadow a future in which uncertainty will be “the new normal” for financial markets amid rising geopolitical risks, Taiwan’s top financial regulator said on Wednesday.
Taiwan’s main index jumped 28% in 2024, making it the best performer in Asia, Taiwan’s Financial Supervisory Commission said, but the tech powerhouse island’s economy faces uncertainly given its yawning trade surplus with the United States which could draw U.S. President Donald Trump’s ire.
“We will closely monitor the effects any Trump policies will have on the markets in Taiwan,” commission chairman Peng Jin-lung told reporters, adding geopolitical risks and Trump’s policies would make market uncertainty the “new normal”.
“This is true not only for Taiwan. Other global markets are also paying close attention,” Peng said.
As he was sworn into office on Monday, Trump directed federal agencies to investigate persistent U.S. trade deficits and unfair trade practices and alleged currency manipulation by other countries.
Taiwan’s trade surplus with the United States surged 83% last year, compared with 2023, with exports to the U.S. hitting a record high of $111.4 billion, driven by demand for high-tech products such as semiconductors.
The United States is trade-dependent Taiwan’s second largest trading partner.
(Reporting by Faith Hung; Editing by Ben Blanchard and Kate Mayberry)
