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Reciprocal Tariffs Hit Financial Markets, Labor Fund Reports NT$ 171.6 Billion Loss in March

Reciprocal Tariffs Hit Financial Markets, Labor Fund Reports NT$ 171.6 Billion Loss in March

In early April, U.S. President Trump implemented reciprocal tariffs, causing global financial markets to tremble and preemptively impacting the labor fund's performance, resulting in losses. According to the Labor Fund Bureau's latest report, as of the end of March 2025, the total scale of the labor fund reached NT$ 7.2358 trillion, with a loss of NT$ 171.6 billion in March alone.

Experts suggest that although losses may also occur in April, they should not be as dire as public expectations, advocating for a long-term view of investment performance. The first quarter's yield stands at -0.94%, necessitating close observation of April's outcomes.

Professor Hsin Ping-lung from National Taiwan University emphasizes that unless the labor fund chooses to sell when the market falls, it should not perform poorly if it holds on until a rebound occurs. Last year, the fund benefited from the AI boom in the stock market, achieving record highs, but this year faces challenges from Trump's tariffs and global market turbulence, making it difficult to reproduce similar high returns.

The Labor Bureau underscores that despite short-term performance being affected by market volatility, the average return over the past decade stands at 6.41%, indicating robust long-term investment performance. They will continue to observe market trends to secure retirement benefits for workers.