*

2025 GDP forecast trimmed to 3.1% vs previous 3.14%

*

Potential US tariffs could slow growth

*

2025 exports expected to rise by 8.99% vs previous 7.08%

*

Inflation forecast cut to 1.88% vs 1.94% previously

(Adds statistics agency comment in paragraph 5, context

throughout)

TAIPEI, May 28 (Reuters) - Taiwan's trade-reliant

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

previously forecast, as uncertainty over possible U.S. tariffs

weighs on growth, the statistics agency said on Wednesday.

A semiconductor powerhouse that runs a large trade

surplus with the U.S., Taiwan was facing duties of 32% on its

U.S. imports until U.S. President Donald Trump paused tariffs

for 90 days to allow negotiations to take place.

Taiwan's gross domestic product is now expected to rise

3.1% this year, the official forecast from the Directorate

General of Budget, Accounting and Statistics showed, slightly

lower than the 3.14% it forecast in February.

One main uncertainty is "the outcome of U.S. trade tariff

negotiations with various countries that can have a far-reaching

impact on the global economy, inflation, and supply chains," it

said in a statement.

It also said that weak growth in consumption and

domestic investments could contribute to slowing growth.

In April, the statistics agency unexpectedly said it would

raise its full-year growth forecast to 3.6% on strong tech

demand.

Taiwan is a key hub in the global technology supply

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

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

Semiconductor Manufacturing Co Ltd ( TSM ) .

The United States is Taiwan's second-biggest export

destination after China.

Taiwan's exports this year are expected to grow by 8.99%,

the agency said, upgrading a previous forecast of 7.08%.

GDP expanded by 5.48% in the first quarter, the statistics

agency said, compared to a preliminary reading of 5.37%, and was

the fastest rate of growth since the first quarter of 2024 when

the economy expanded 6.64%.

The forecast for the consumer price index (CPI) was lowered

to 1.88% from 1.94% previously.