Taiwan’s economy, which is heavily reliant on exports, is projected to grow by less than 3% in 2025 due to the impact of reciprocal US tariffs, which are unexpectedly high at 32%. This tariff rate is above the regional average and is expected to significantly affect Taiwan’s manufacturing sector and exports, particularly in the electronics, plastics, and textile industries. Taiwan’s vulnerability is heightened by its strong dependence on the US market, which accounted for 23% of its exports last year. Additionally, the global economic slowdown, especially in major economies like the US, China, Japan, and Europe, is expected to exacerbate the situation. As a result, Taiwan’s GDP growth could be reduced by up to 0.8 percentage points directly from the tariffs, and the total impact could lower growth to just 2% for the year.
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Source: Taipei Times
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