US Imports from Taiwan Overtake China on AI Chip Demand

AI demand is quietly redrawing global trade maps — and, for the first time in decades, Taiwan has overtaken China as the US’s largest source of imports.

Commerce Department data showed US imports from China fell 44% in December to $21.1 billion. In contrast, shipments from Taiwan more than doubled to $24.7 billion. This was driven largely by soaring demand for AI chips and servers.

The shift highlights how the artificial intelligence boom has transformed Taiwan’s trade profile. Once more reliant on exports to China, the island last year sent nearly twice as many goods to the US as it did across the Taiwan Strait. As a result, the US now accounts for almost one-third of Taiwan’s total exports.

Higher tariffs imposed by US President Donald Trump have pushed Chinese exporters to diversify into other markets. This led to a sharp decline in direct US-China trade. Still, the US recorded a $12.7 billion trade deficit with China in December.

For the full year 2025, the US trade deficit with China fell to $202.1 billion. However, it more than doubled with Taiwan to nearly $147 billion. This underscores how AI-driven tech trade is reshaping economic ties.

Taiwan’s Ministry of Finance said exports of information and communications products to the US jumped by more than 200% in December. Additionally, a recent trade deal between Taipei and Washington lowered reciprocal tariffs to 15%, with certain semiconductor shipments eligible for duty-free treatment under quotas.

Backed by strong AI demand, Taiwan has sharply raised its 2026 GDP growth forecast to 7.71%. This reflects growing confidence in its expanding tech-led economy.

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