Taiwan enters 2026 with strong momentum as AI-driven exports and investment push growth to multi-year highs, even as domestic demand cools and external risks grow more complex. A newly clarified U.S.–Taiwan tariff framework adds welcome predictability, reinforcing business confidence while underscoring the need for careful policy calibration ahead.

Taiwan’s economy continues to expand in early 2025, driven by strong semiconductor exports and AI demand, but concerns over potential U.S. tariffs and a cooling real estate market have tempered optimism. With GDP growth projections slightly revised downward and trade policies in flux, policymakers and businesses are closely watching global demand and supply chain shifts.