TAIPEI (Taiwan News) — Taiwan expects to maintain economic growth after US President Donald Trump announced a 15% global tariff, National Development Council Minister Yeh Chun-hsien (葉俊顯) said Tuesday.
Yeh said that compared with last year’s 20% tariff plus most-favored-nation rates, Taiwan’s GDP growth this year would rise by about 0.08 percentage points, per CNA. If Taiwan’s most-favored-nation treatment under Section 232 is included, growth could increase by 0.18 percentage points, he said.
The Agreement on Reciprocal Trade signed on Feb. 13 set a 15% non-stacked tariff for Taiwan and confirmed Section 232 preferential treatment. More than 2,000 Taiwanese products exported to the US are exempt from the tariff.
However, the US Supreme Court on Friday ruled that Trump had exceeded his authority by using the 1977 International Emergency Economic Powers Act to impose additional tariffs. Trump then invoked Section 122 to impose a 15% tariff globally.
Vice Premier Cheng Li-chiun (鄭麗君) said the new 15% tariff under Section 122 would apply worldwide and be stacked on top of existing MFN rates. Taiwan will continue talks with Washington to preserve the relative advantages it has secured, she said.
Yeh said that even without counting Section 232 preferences, a 15% tariff stacked on MFN rates would still produce a small positive effect compared with 2024 conditions. He estimated the growth impact between 2026 and 2037 would range from 0.01 to 0.14 percentage points.
In the medium to long term, Yeh said Taiwan’s preferential treatment under Section 232 and deeper semiconductor supply chain ties with the US would help firms capture AI-driven demand. Over the next decade, those factors could gradually lift Taiwan’s annual GDP growth rate to 1.23%, he said.
An NDC official told CNA that although the US is expected to impose tariffs on many countries, all economies face similar pressure. In 2024, 76% of Taiwan’s exports to the US fell under categories being reviewed under Section 232, meaning Taiwan’s key industries are more exposed to rules where it has negotiated advantages, per CNA.
The official said that compared with the pre-2024 tariff war scenario, Taiwan can still maintain growth, with gains in output and employment. As bilateral investment and economic cooperation deepen, Taiwan’s edge in AI-related sectors is expected to expand over time, the official added.
Cheng said Taiwan’s agreements with the US provide a foundation to respond to policy changes. Although Washington is restructuring its tariff tools, she said economies that have reached agreements should have greater room to secure favorable treatment.
