Taiwan's Export Growth Expected to Slow in H2 2025 post U.S. Tariffs
Taiwan's export momentum is projected to decelerate in the latter half of 2025, following a strong performance earlier in the year, according to the Taiwan Ministry of Economic Affairs. The anticipated slowdown is largely attributed to upcoming U.S. tariff increases, as reported by Focus Taiwan.
ANI
Jul 23, 2025 11:09 IST
Taipei [Taiwan], July 23 (ANI): Taiwan's export momentum is projected to decelerate in the latter half of 2025, following a strong performance earlier in the year, according to the Taiwan Ministry of Economic Affairs. The anticipated slowdown is largely attributed to upcoming U.S. tariff increases, reported Focus Taiwan.
Huang Wei-jie, head of the ministry's statistics department, said that while exports remain on an upward trajectory, July export orders are forecast between USD 54 billion and USD 56 billion -- marking a 7.9 per cent to 11.9 per cent year-on-year increase.
This growth, however, falls short of the high double-digit gains seen in most months of the first half.
Taiwan had seen exceptional export growth in the first six months, with year-on-year increases exceeding 15 per cent in four of the six months. The surge was partly driven by front-loading of orders ahead of the U.S. tariff hikes announced by President Donald Trump in April, though those measures won't take effect until August.
"Some companies said the momentum has faded, while others told us it's still continuing," Huang noted.
In June, Taiwan recorded USD 56.77 billion in export orders, the second-highest figure ever for that month, driven by continued demand for AI technologies. This represented a 24.6 per cent increase from June 2024 and marked the fifth consecutive month of growth.
Total export orders reached USD 171.1 billion in Q2 and USD 320.6 billion for the first half of 2025, rising 20.9 and 16.6 per cent year-on-year, respectively.
Demand for AI and cloud computing products, including servers, networking gear, and GPUs, drove a 37.4 per cent rise in information and communication technology (ICT) exports to USD 17.51 billion.
Electronic product orders, including semiconductors and PCBs, rose 35 per cent to USD 20.98 billion. However, traditional sectors such as rubber, plastics, and base metals continued to contract, with declines of 11.4 per cent and 10.2 per cent, respectively.
Vice Premier Cheng Li-chiun is scheduled to travel to the U.S. for a new round of tariff negotiations amid speculation of a 32 per cent proposed rate, a figure the government denies.
Looking ahead, a potential boost in consumer electronics orders could emerge in August, though much hinges on final U.S. tariff decisions. (ANI)
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