Taiwan is preparing for a significant revision of its 2025 growth forecast following the imposition of US tariffs on exports from the island nation. This move marks Taiwan’s first step towards a more optimistic economic outlook since then President Trump implemented a 20% tariff rate on their products to the US market. The statistics bureau in Taipei plans to release updated figures shortly, having previously predicted a 3.1% growth rate for this year. However, economists anticipate that Taiwan’s economy could exceed this prediction and reach a growth rate of 4.1%. This new economic outlook reveals details about Taiwan’s 2026 GDP projection and inflation forecasts for 2025 and 2026. The news comes at a time when Taiwan is experiencing a surge in demand for its advanced chips, fueled by the adoption of AI technologies across various companies. This surge has been linked to preemptive purchases of these products before Trump’s tariff rate took effect. Notably, these actions triggered substantial economic growth for Taiwan during the final quarter of last year, with exports reaching $154 billion. The US government’s actions have not gone unnoticed, sparking concerns about the potential impact on Taiwan’s economy and trade relations with the US. While some economists like Hyosung Kwon of Bloomberg Economics believe a decline in Taiwan’s economic growth is likely, driven by market uncertainties impacting technology companies. Others are optimistic about AI-driven growth but acknowledge that this growth may be threatened by various factors.