Taiwan's Economic Outlook: Tariff Threats and Growth Challenges

Minister Chen Shu-tzu Highlights Trade Uncertainties Impacting Taiwan's GDP

TAIPEI, Taiwan – Concerns are rising in Taiwan regarding the nation's economic growth target for the current year. Directorate General of Budget, Accounting, and Statistics Minister Chen Shu-tzu (陳淑姿) expressed reservations during a recent legislative hearing, suggesting that the country's anticipated 3.14% growth could be at risk.

Minister Chen cited ongoing global trade friction and potential tariff impacts as key challenges. The official stated that reaching the initial target "will be difficult" due to these uncertainties, according to reports from CNA.

During a Finance Committee session focused on budget considerations, legislators, including DPP Legislator Lee Kun-cheng (李坤城), pressed Minister Chen and Finance Minister Chuang Tsui-yun (莊翠雲) for clarity on Taiwan's economic outlook. The discussions highlighted anxieties about headwinds in the global trade landscape, as reported by UDN.

Minister Chen elaborated that while tariff negotiations currently appear stable, underlying risks persist. These include potential scrutiny from the United States regarding country-of-origin issues. She also mentioned that any adjustments to the economic forecast would undergo thorough expert review.

The Directorate General of Budget, Accounting, and Statistics (DGBAS) previously estimated that tariffs could potentially decrease Taiwan's GDP growth by 0.5 to 1.5 percentage points. Although agreements with the UK and China, along with a delay in US tariff actions, might mitigate some of the negative impacts, caution remains.

The remarks from Minister Chen signal a growing sense of prudence within the government. An updated economic forecast is scheduled to be released on May 28, providing further insights into Taiwan's economic trajectory.