Tariffs Pose Challenges to Industries, National Development Council Acknowledges Difficulty in Maintaining 3% Economic Growth Target
9 April 2025 路 Uncategorized 路
Source: 路 https://finance.technews.tw/2025/04/09/taiwan-gdp-growth-3-difficult/
US President Trump has announced tariffs on Taiwan, matching the island's tax rate and reaching as high as 32%. National Development Council Chairman Liu Jingqing today acknowledged that these tariffs will significantly impact both the Taiwanese economy and industry. He cautioned that maintaining this year鈥檚 economic growth target of three percent would be a considerable challenge.
The Legislative Yuan Economic Committee convened earlier to hear from Minister Guo Zhihui (Ministry of Economy) and Chairman Liu regarding strategies for supporting domestic traditional industries and small-to-medium enterprises in response to shifting international trade relations. According to the NDC, the World Trade Organization now predicts a 1% decline in global trade volume鈥攁 significant revision from its previous forecast of 3.2% growth. The International Monetary Fund warns that US tariffs pose substantial risks to the world economy, while the Asian Development Bank highlights broad tariff coverage as potentially leading to considerable slowdowns in both American and worldwide economic expansion.
Recognizing Taiwan鈥檚 status as an export-oriented nation, Chairman Liu emphasized that additional tariffs from America will inevitably have a major impact on its economy. The Directorate General of Budget, Accounting and Statistics' February forecast projected Taiwanese GDP growth at 3.14% for this year. Democratic Progressive Party legislator Lai Liei-long questioned the feasibility of maintaining three percent growth under tariff pressures; Liu Jingqing conceded that achieving it would be challenging but affirmed the government鈥檚 commitment to striving towards that goal.
Nationalist Party Legislator Xie Yifeng raised concerns about assisting businesses, prompting Chairman Liu to suggest two strategies: supply chain relocation and market diversification into emerging economies such as India and Turkey. He noted Taiwan has considerable room for expansion within these markets. The government plans to provide incentives, engage in dialogue with industry associations, and explore ways of guiding companies toward new opportunities.
(Author: Pan Ziyu; Image source: pixabay)
The Legislative Yuan Economic Committee convened earlier to hear from Minister Guo Zhihui (Ministry of Economy) and Chairman Liu regarding strategies for supporting domestic traditional industries and small-to-medium enterprises in response to shifting international trade relations. According to the NDC, the World Trade Organization now predicts a 1% decline in global trade volume鈥攁 significant revision from its previous forecast of 3.2% growth. The International Monetary Fund warns that US tariffs pose substantial risks to the world economy, while the Asian Development Bank highlights broad tariff coverage as potentially leading to considerable slowdowns in both American and worldwide economic expansion.
Recognizing Taiwan鈥檚 status as an export-oriented nation, Chairman Liu emphasized that additional tariffs from America will inevitably have a major impact on its economy. The Directorate General of Budget, Accounting and Statistics' February forecast projected Taiwanese GDP growth at 3.14% for this year. Democratic Progressive Party legislator Lai Liei-long questioned the feasibility of maintaining three percent growth under tariff pressures; Liu Jingqing conceded that achieving it would be challenging but affirmed the government鈥檚 commitment to striving towards that goal.
Nationalist Party Legislator Xie Yifeng raised concerns about assisting businesses, prompting Chairman Liu to suggest two strategies: supply chain relocation and market diversification into emerging economies such as India and Turkey. He noted Taiwan has considerable room for expansion within these markets. The government plans to provide incentives, engage in dialogue with industry associations, and explore ways of guiding companies toward new opportunities.
(Author: Pan Ziyu; Image source: pixabay)