Taiwan lowered its prediction for growth this year, signaling its concern about the potential impact of the Trump administration’s policies on its economy and a domestic fight over the budget.

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 Premier Cho Jung-tai said that U.S. President Donald Trump's threat to impose tariffs on imported chips would cause "not a small" impact to Taiwan's semiconductor industry. The premier was questioned by opposition lawmakers about how the country will face the threat.