TAIPEI (Taiwan News) — Directorate General of Budget, Accounting, and Statistics Minister Chen Shu-tzu (陳淑姿) warned Thursday the economy could fall short of 3.14% growth this year.

Speaking at a legislative hearing, the budget official said “it will be difficult” for Taiwan to reach its target due to ongoing risks from tariffs and global trade friction, per CNA.

Lawmakers pressed Chen and Finance Minister Chuang Tsui-yun (莊翠雲) during a Finance Committee session reviewing budget freezes. DPP Legislator Lee Kun-cheng (李坤城) voiced concern about Taiwan’s outlook given trade headwinds, per UDN.

Chen explained that while negotiations over tariffs appear stable for now, risks remain, including potential US scrutiny of country-of-origin issues. Forecast revisions must go through expert review, she added.

The DGBAS previously estimated that tariffs could shave 0.5 to 1.5 percentage points off GDP growth. A delay in US tariff action and recent agreements with the UK and China could soften the impact.

Still, Chen’s remarks signal growing caution inside the government. An updated economic forecast will be released on May 28.