Taiwan business confidence hits two-year low

Taiwan’s business confidence dropped to a two-year low in April as manufacturers grew wary of US tariff threats, according to a survey by the Taiwan Institute of Economic Research. The sentiment index for local manufacturers slid 3.53 points to 90.9, its third straight monthly decline, as firms struggled to interpret US President Donald Trump’s “reciprocal” tariff plan, which included a 32% levy on Taiwanese goods. Despite a 90-day truce between Washington and Beijing, only 18.2% of manufacturers reported improved performance. Sentiment also weakened across the service and real estate sectors, reflecting pressure from a stronger Taiwan dollar and weak equity markets. Economists say Taiwan’s GDP could still grow 3% in 2025 if trade tensions ease further and tariff rates are moderated.