Taiwan to Raise 2025 Growth Forecast Despite U.S. Tariff Threats

• Taiwan raises 2025 growth forecast despite tariff tensions.
• Pre-tariff buying rush and semiconductor boom boost economy.

Taiwan is raising its 2025 economic growth outlook despite threatened U.S. tariff policies, according to Cryptopolitan on August 15, 2025. The announcement follows a 20% tariff on Taiwanese exports to the U.S. and a potential 100% tariff on semiconductors, which have raised concerns over Taiwan's export-driven economy.

While Taiwan faces these economic challenges, a notable period of heightened global demand for its advanced chips has provided temporary support. Increased adoption of artificial intelligence technologies, combined with companies front-loading orders to avoid impending tariffs, has created an unexpected export surge that temporarily boosted Taiwan's economy.

In May 2025, Taiwan's statistics bureau had projected a 3.1% growth rate for the year. Recent data, however, suggests a stronger economic outlook. A median forecast from 22 economists now estimates Taiwan's 2025 growth rate at 4.1%, driven by pre-tariff stockpiling combined with robust AI-related chip sales. The statistics bureau is expected to release updated growth projections soon, which will include an initial forecast for 2026 gross domestic product (GDP) and inflation rates for both 2025 and 2026.

Taiwan Semiconductor Manufacturing Company (TSMC), a critical contributor to Taiwan's economy, plays a key role in this growth outlook. TSMC, which supports global tech giants like Nvidia Corp. and Apple Inc., may avoid the full impact of the proposed 100% semiconductor tariff. The U.S. government may exempt companies with significant investment in U.S.-based manufacturing facilities, a category that may include TSMC due to its ongoing efforts to establish operations within the United States.