US imports from Taiwan overtake China for first time in decades

The United States imported more goods from Taiwan than from China for the first time in decades in December, as President Donald Trump’s tariffs continued to reshape global trade flows and a surge in artificial intelligence demand boosted technology shipments.

According to data released Thursday by the US Commerce Department, American imports from China fell nearly 44% year-on-year in December to $21.1 billion. In contrast, imports from Taiwan more than doubled over the same period, reaching $24.7 billion, News.Az reports, citing Bloomberg.

The sharp rise in Taiwanese exports to the US reflects rapid growth in shipments of semiconductors and AI-related servers, which have significantly altered the self-ruled island’s trade structure. The AI-driven expansion has propelled Taiwan’s nearly $1 trillion economy into one of the fastest-growing in the world.

As recently as 2023, Taiwan exported more goods to China than to the US or any other market. However, last year, exports crossing the Pacific to the US were roughly twice as large as those sent across the Taiwan Strait to China.

While Chinese exporters have increasingly diversified away from the US market due to higher tariffs imposed under Trump, Taiwanese companies have deepened their exposure to the American market. Last year, nearly one-third of Taiwan’s total exports were destined for the US.

Despite Chinese firms expanding into alternative markets and routing goods through third countries to mitigate tariffs, direct trade between the world’s two largest economies has declined sharply.

The latest figures also highlight the continuing imbalance in US trade. In December, the US recorded a $12.7 billion trade deficit with China — smaller than its deficits with the European Union, Taiwan, Vietnam and Mexico.

For the full year 2025, the US trade deficit with China narrowed by $93.4 billion to $202.1 billion. Meanwhile, the deficit with Taiwan more than doubled, reaching nearly $147 billion.

Taipei’s Ministry of Finance attributed the export surge to strong global demand for Taiwan’s technology products. Shipments of “information, communications and audiovisual products” to the US in December climbed 200.7% compared with a year earlier.

Last week, Taipei signed a trade agreement with Washington that will lower the reciprocal tariff rate to 15% from 20%. Semiconductor products may also enter the US duty-free under specified quota arrangements.

The trade pact, combined with optimism surrounding the AI boom, prompted Taiwan’s statistics bureau to sharply revise upward its forecast for 2026 economic growth to 7.71%, up from a previous estimate of 3.54%.

News.Az 

By Nijat Babayev