Taiwan’s consumer confidence fell sharply in April 2025, reaching its lowest point in nearly a year, as global economic uncertainty fueled by U.S. President Donald Trump’s unpredictable tariff policies rattled markets and investor sentiment.
According to the latest data released by the National Central University (NCU) on Sunday, Taiwan’s Consumer Confidence Index (CCI) slid 3.65 points from the previous month to 68.21, marking the lowest figure since May 2024. The survey, conducted between April 18–21, captures growing public anxiety over Taiwan’s economic prospects, especially given the looming threats to its export-driven economy.
How Trump’s Tariff Chaos is Impacting Taiwan
The sharp decline comes in the aftermath of a chaotic sequence of events:
- On April 2 (U.S. time), Trump announced high “reciprocal” tariffs on many countries, including Taiwan.
- Just a week later, he paused the tariffs for 90 days but maintained a 10% universal baseline tariff for most nations.
This mixed messaging severely destabilized global markets. In Taiwan, it triggered the biggest single-day stock market drop in history on April 7, with the benchmark TAIEX losing over 2,000 points in one day.
Despite Trump temporarily suspending full implementation, uncertainty remains. Crucially, a decision on semiconductor-specific tariffs — a lifeline industry for Taiwan — is still pending. Experts fear Trump could impose import duties of 25–30% on Taiwanese chips, a move that would devastate Taiwan’s industrial exports and broader economy.
Breaking Down the CCI Numbers
The Consumer Confidence Index reflects public sentiment across six categories for the next six months:
- Stock Market Outlook
- Consumer Prices
- Employment Prospects
- Family Finances
- Purchasing Durable Goods
- Local Economic Climate
For April:
- The stock market outlook sub-index plunged by 11.25 points to 38.64, the steepest drop and lowest point in the past year.
- Other sub-indices for consumer prices, family finances, local economy, and employment prospects also hit their lowest levels since July 2024.
- The durable goods purchasing index fell to 99.13, dropping below the 100-point optimism threshold, indicating that consumers have shifted to a more pessimistic view.
Under NCU’s scoring system:
- A sub-index below 100 = pessimistic
- A sub-index above 100 = optimistic
Clearly, Taiwanese consumers are now overwhelmingly pessimistic about their near-future economic prospects.
Broader Economic Implications: Beyond the Numbers
NCU Research Center Director Dachrahn Wu warned that Taiwan’s vulnerabilities are stark. If semiconductor tariffs materialize:
- Export volumes could fall sharply.
- Manufacturing jobs could face layoffs.
- Overall GDP growth could slow dramatically.
Moreover, Taiwan’s legislative delegation is currently lobbying in Washington for tariff exemptions, especially for critical sectors like ICT (Information and Communications Technology) and semiconductors. Meanwhile, Premier Cho Jung-tai has proposed a NT$410 billion (US$12.6 billion) tariff countermeasure bill to mitigate potential damage — emphasizing the seriousness of the threat.
Even if Trump ultimately softens the tariff blow, the uncertainty alone is likely to cause prolonged economic sluggishness, weaker private consumption, and higher unemployment risk in Taiwan throughout 2025.
FAQs
Why did Taiwan’s consumer confidence fall in April 2025?
The main reason was economic uncertainty caused by U.S. President Trump’s unstable tariff policies, which created global market turbulence and fears of a future slowdown.
What sectors are most vulnerable to U.S. tariffs?
Taiwan’s semiconductor industry is particularly vulnerable, with potential tariffs as high as 25–30% being discussed. The ICT and manufacturing sectors are also at risk.
What does a CCI score below 100 mean?
A score below 100 indicates consumer pessimism about economic conditions over the next six months.
How bad was Taiwan’s stock market hit in April?
Taiwan’s benchmark index dropped over 2,000 points on April 7, the steepest single-day fall in its history.
What actions are Taiwan’s government taking?
Taiwan has launched diplomatic efforts to seek tariff exemptions in Washington and proposed a NT$410 billion relief package to counter tariff-related impacts.
