TAIPEI (TVBS News) — Taiwan's economic outlook has darkened considerably following U.S. trade action, according to the island's top development official. National Development Council (NDC, 國發會) Minister Paul Liu (劉鏡清) acknowledged on Wednesday (April 9) the significant challenges now facing Taiwan's economy after U.S. President Donald Trump announced a substantial 32% tariff increase on Taiwanese exports. The minister expressed growing uncertainty about Taiwan's ability to maintain its previously projected 3% economic growth target this year. This reassessment comes despite the Directorate-General of Budget, Accounting, and Statistics (DGBAS, 主計處), Taiwan's national statistics agency, having forecast a relatively robust 3.14% growth rate for the island's economy just two months ago in February.
The sobering assessment came during a special session of the Legislative Yuan's (立法院, Taiwan's parliament) Economic Committee, which had summoned Minister of Economic Affairs J.W. Kuo (郭智輝) and NDC Minister Liu to provide legislators with a comprehensive briefing on rapidly evolving international trade conditions. During this high-level meeting, the NDC presented alarming data from the World Trade Organization (WTO), which has dramatically reversed its previous outlook and now forecasts a global trade volume decline of 1% in 2025, a stark contrast to its earlier projection of 3.2% growth. The presentation also highlighted recent warnings from the International Monetary Fund (IMF), which has explicitly identified the new wave of U.S. tariffs as posing substantial risks not only to targeted economies but to global economic stability as a whole.
Further deepening concerns, the NDC cited a recent analysis from the Asian Development Bank (ADB) that paints an equally troubling picture, warning that the new tariff regime would have widespread effects and could substantially decelerate both U.S. and global economic momentum. Minister Liu underscored Taiwan's particular vulnerability in this scenario, emphasizing the island's fundamental character as an export-oriented economy heavily dependent on international trade. This structural reality, he explained, means that the substantial U.S. tariff increase will unavoidably have significant repercussions for Taiwan's economic performance in the coming months.
The economic forecast prompted pointed questions from lawmakers about concrete government actions to shield Taiwanese businesses from these looming trade headwinds. Kuomintang (KMT, 國民黨) Legislator Hsieh Yi-fong (謝衣鳯), representing Taiwan's main opposition party, pressed officials on specific support measures for vulnerable industries. Responding to these concerns, Minister Liu outlined a multi-pronged strategy, recommending that Taiwanese companies aggressively explore emerging markets while simultaneously considering strategic supply chain relocations and comprehensive market diversification. The minister revealed that the government is developing a package of targeted incentives and strengthening collaboration with key industry associations to facilitate business expansion into alternative markets less affected by the new tariff barriers.
