Taiwan Semiconductor Shares Are Down Today: What's Going On?

Taiwan Semiconductor Manufacturing Company Ltd. TSM shares are trading lower on Wednesday as chip stocks declined amid broader market weakness and trade concerns.

The drop follows the U.S. government's decision to add several Chinese technology firms to its export blacklist, heightening geopolitical tensions in the semiconductor industry.

What To Know: The market is reacting to the White House's plan to impose targeted trade tariffs on April 2. While the original proposal included broad levies on industries such as semiconductors, automotive and pharmaceuticals, the administration has shifted to a narrower approach.

The tariffs will now focus on 15 countries — including China, Japan, Germany, Canada and South Korea — that have been identified for trade imbalances. These nations are expected to face higher import duties, aligning U.S. tariffs with those they impose on American exports.

Treasury Secretary Scott Bessent and other officials have backed this refined strategy, moving away from broader tariff classifications. Despite pushback from industry representatives seeking exemptions, Commerce Secretary Howard Lutnick and U.S. Trade Rep. Jameson Greer have maintained a firm stance against exception-heavy policies. However, President Donald Trump has suggested that some flexibility remains possible depending on future negotiations.

The semiconductor industry remains under pressure as global trade tensions escalate. The renewed uncertainty is also affecting cryptocurrency markets, with Bitcoin experiencing volatility as traders weigh its potential role as a hedge against economic instability. While protectionist policies could drive more interest in decentralized finance, a prolonged risk-off sentiment in equities may spill over into the crypto sector.

TSM Price Action: Taiwan Semiconductor shares at market close Wednesday were down 4.09% at $173.50, according to Benzinga Pro.