TAIPEI, Feb 26 (Reuters) - Taiwan's trade-reliant

economy is expected to grow at a slower pace in 2025 than

previously forecast, with the threat of turbulence from tariffs

that may be imposed by the United States, as well as

parliament-imposed budget cuts.

Taiwan is a key link in the global technology supply chain

for companies such as Apple Inc ( AAPL ) and Nvidia ( NVDA ),

and is home to the world's largest contract chipmaker, Taiwan

Semiconductor Manufacturing Co Ltd ( TSM ) .

U.S. President Donald Trump has floated a proposal for a

minimum 25% tariff on chips. Taiwan has responded to the tariff

threat with diplomatic overtures and plans to discuss chip

investment in the United States.

The United States is Taiwan's second-biggest export

destination, after China.

The Trump administration has announced wide-ranging tariffs

"affecting global trade momentum and pushing up inflationary

pressure, and intensifying economic uncertainties," the

Directorate General of Budget, Accounting and Statistics said in

a statement on Wednesday.

Taiwan's gross domestic product for this year is now

expected to be 3.14% higher than last year, the agency said,

revising downward the 3.29% forecast it issued in November.

That would be lower than the 4.59% growth rate for 2024.

The agency said budget cuts imposed by Taiwan's

opposition-dominated parliament would also reduce economic

growth this year given it would mean less government investment

and spending.

However, exports this year were expected to grow 7.08%, the

agency said, upgrading a previous forecast of 5.98%.