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US Imports Shift: Taiwan Surpasses China for First Time
20 Feb
Summary
- US goods imports from China dropped nearly 44% in December.
- Taiwanese shipments to the US more than doubled to $24.7 billion.
- AI demand is a major driver of Taiwan's increased exports.
In a significant shift, the United States imported more goods from Taiwan than from China in December, a development not seen in decades. This trade flow alteration is largely attributed to President Trump's tariffs and a booming global demand for artificial intelligence technology.
US purchases of goods from China saw a dramatic decrease of almost 44% in December compared to the previous year, falling to $21.1 billion. Conversely, shipments from Taiwan experienced a substantial increase, more than doubling to $24.7 billion during the same period. This surge is directly linked to the expanded supply of chips and servers vital for AI companies.
While China's exporters have actively sought markets beyond the US to avoid tariffs, Taiwanese firms have increasingly focused on the American market, with the US receiving nearly a third of Taiwan's total exports last year. This strategic redirection, coupled with a recent trade agreement lowering tariffs and offering duty-free semiconductor imports under quotas, has boosted Taiwan's economic outlook, prompting a significant upgrade to its GDP growth forecast for 2026.
