TAIPEI (Taiwan News) – With the Trump administration’s 32% tariffs for Taiwan coming into effect Wednesday, the country’s economic growth will be unlikely to reach the initially predicted 3% for the year, according to the government.

Earlier this year, prominent think tanks in Taiwan saw the gross domestic product expand between 3% and 3.5 % in 2025, with the government predicting 3.14%. However, National Development Council Minister Paul Liu (劉鏡清) told lawmakers Wednesday that a research group forecast the US tariff would slice between 0.43% and 1.61% off the final GDP total.

He said the council would commission a second institution to present its own research, Radio Taiwan International reported. The minister advised Taiwan’s businesses to adjust their markets and supply chains, and invest in promising emerging economies, naming India and Turkey.

Economics Minister Kuo Jyh-huei (郭智輝) explained Wednesday that goods shipped from Taiwan before May and entering the US before May 27 would not be subject to the new tariff. 

A 10% tariff would be valid for goods leaving Taiwan between April 5 and April 9, if they passed customs into the US before May 27. The full 32% tariff would only apply to products leaving Taiwan after Wednesday, according to Kuo.