Taiwan lowered its prediction for growth this year, signaling its concern about the potential impact of the Trump administration’s policies on its economy and a domestic fight over the budget.
Taiwan lowered its economic growth forecast for the year due to concerns over the potential impact of U.S. President Donald Trump’s trade policies, particularly tariffs on semiconductors, and a domestic budget dispute. The revised forecast reflects worries about the risks posed by Trump’s trade agenda, which could affect Taiwan’s trade surplus with the U.S. Additionally, the government faced criticism over cuts to its budget, which some argue could further strain the economy. Despite these concerns, Taiwan’s economy grew at its fastest pace in three years in 2024, driven by strong demand for tech exports amid the artificial intelligence (AI) boom. The island also projected a 7.08% increase in exports for the year, up from a previous estimate of 5.98%, with AI-related demand expected to bolster growth in electronic components and information and communication technology products. However, some economists expressed cautious optimism, noting that while Taiwan is highly exposed to U.S. tariffs, the government does not appear overly concerned.
