As the trade war initiated by Trump escalated, Taiwan's stock market experienced significant volatility, prompting the financial sector to sell shares to protect their investments. According to recent statistics from the Financial Supervisory Commission, the financial sector sold off NT$102.6 billion worth of stocks in April, leading to an unexpected reversal from net purchases of NT$100 billion in the first quarter to a slight net reduction in the initial four months of the year.

Originally optimistic about the stock market, banks reduced their investments by NT$29.4 billion in April following the announcement of retaliatory tariffs by Trump, marking the largest single-month sell-off since September 2024. By the end of April, banks had invested approximately NT$473.6 billion in the market, with their market value falling to NT$826.8 billion.

Similarly, the insurance sector also faced a substantial foreign exchange loss due to the appreciation of the New Taiwan Dollar, leading to a reduction of NT$35 billion in stock investments. Overall, the stock market has faced extreme volatility this month, prompting financial firms to consolidate gains and reassess their future strategies.