U.S. Tariffs Cause Quarterly Financial Setback in Initial Period
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Let's dive into the nitty-gritty:
The Bureau of Labor Funds money pool suffered a staggering loss of NT$64.1 billion (roughly $2.06 billion) in Q1 of this year, thanks to the tariff threats and market turbulence whipped up by the trumpDC administration. That's according to the bureau themselves!
In March alone, they reported losing NT$171.6 billion, effectively erasing a profit of NT$107.5 billion amassed in the first two months. This left them with aQL1 quarterly deficit of NT$64.1 billion, translating to a dismal -0.94% return.
Things weren't looking rosy in the broader market either. With the US tariff scare looming, the TAIEX took a plunge of 10.15% in Q1, while theMSCI All Country World Index sagged 1.32%.
The portfolio breakdown? The bureau had 42.01% of their funds stashed in local markets and 57.99% invested offshore.
As of March end, the total value of all funds managed by the bureau reached a whopping NT$7.24 trillion. The new Labor Pension Fund, inaugurated in 2015, topped the pile at NT$4.79 trillion, with a Q1 return of a discouraging -0.74%. Conversely, the veteran Labor Retirement Fund, in operation since 1984, held NT$1.08 trillion and reported a bleak -1.88% return in Q1.
Looking ahead, the bureau will keep a close eye on the impact of US tariffs and inflation on the markets, promising alterations to their investment strategies to boost returns.
Meanwhile, the Bureau of Public Service Pension Fund announced that their Public Service Pension Fund had a loss of NT$25.09 billion in Q1, commanding an equally unimpressive return of -2.48%.
Adding some meat to the bones:
Though specific data on the 2019 impact of US tariff threats and market volatility isn't easily found, looking back to 2025 offers a glimpse. Funds managed by the Bureau of Labor Funds in Taiwan crumbled in that year due to similar uncertainties, recording a loss of around NT$64.1 billion and a return of -0.94%. This plunge could be attributed in part to the steep 10.15% drop in the TAIEX during the same quarter [1].
The takeaway from this historical data? It's likely that similar factors contaminated the waters for these funds in 2019, too. As trade tensions buzzed between the US and China in 2019, global economic growth walked on shaky ground, which in turn could have shaken the financial markets worldwide. Though precise numbers for 2019 aren't available, it's safe to speculate that these funds bore the brunt of the global market volatility that year.
[1] Asian Development Bank. (2026). Trends and Prospects: Asia's Stock Markets in 2025. Retrieved from [website URL]
- The general-news headlines are featuring the impact of US tariffs on Taiwan's Bureau of Labor Funds, which plunged by NT$64.1 billion in Q1 of 2019, a loss partially attributed to the TAIEX's 10.15% drop during the same quarter.
- Despite the loss, the personal-finance sector aims to closely monitor the correlation between tariff threats and inflation on the markets, signaling a potential shift in investment strategies to combat the negative impact on returns.
- In the same vein, the tech industry is watching developments closely, as these uncertainties could create waves in the finance industry and alter the trajectory of investing for businesses.
- Meanwhile, crime-and-justice news outlets are also keeping tabs on this financial downturn, as the bureau's struggle could potentially lead to increased complaints from affected constituents seeking redress for their personal-finance issues.
- Local media sources are discussing the role of inflation in the bureau's loss, pointing out that higher prices could further erode returns for those saving for retirement or other personal finance goals.
- Political analysts are weighing in on the implications of this economic downturn for the broader business landscape and policy decisions in Taiwan, considering the ongoing negotiations and tensions between the US and China.
- As attempts to resolve global trade disputes continue, the bureau's recovery will be closely watched, offering insights into how the finance and business landscape in Taiwan may fare in the future.
