Taipei, April 9 (CNA) Taiwan’s economic growth could shrink by as much as 1.61 percentage points due to looming U.S. tariffs, National Development Council (NDC) Minister Paul Liu (劉鏡清) said Wednesday, citing preliminary analysis.
Following the announcement of a 32 percent “reciprocal tariff” by the United States, early findings indicate that Taiwan’s gross domestic product (GDP) growth could decline by between 0.43 and 1.61 percentage points, Liu told lawmakers during a legislative committee meeting.
As a highly trade-dependent economy, Taiwan will be significantly impacted by such a tariff hike, Liu said, adding that the NDC commissioned experts to evaluate the potential impact. A second review by another research institute is also underway.
The Directorate General of Budget, Accounting and Statistics had previously forecast 3.14 percent GDP growth for 2025. Under the worst-case scenario, Liu warned, growth could fall to just 1.53 percent.
According to a Bloomberg report, model projections estimate that a 32 percent U.S. tariff on Taiwanese exports could slash Taiwan’s shipments to the U.S. by around 63 percent, potentially leading to a 3.8 percent GDP contraction.
► Exports up for 16th straight month in February with U.S. as No. 1 buyer (March 8)
► Taiwan becomes 7th largest U.S. trading partner in 2024 (March 9)
