U.S. imports from Taiwan surpass goods from China for the first time in decades
The United States imported more goods from Taiwan than from China for the first time in decades, as tariffs and booming AI demand reshaped trade flows.
According to the Department of Commerce (DOC), U.S. imports from China fell nearly 44% year-over-year in December 2025 to $21.1 billion, while imports from Taiwan more than doubled to $24.7 billion.
The shift has been driven largely by rising U.S. demand for advanced semiconductors and AI-related technology produced by Taiwanese firms, with the U.S. now accounting for nearly one-third of Taiwan’s total exports.
Despite reduced imports, the U.S. trade deficit with China totaled $202.1 billion in 2025, while the deficit with Taiwan more than doubled to nearly $147 billion amid increased high-tech imports.
A new trade agreement finalized by the Office of the United States Trade Representative sets a 15% U.S. tariff rate on Taiwanese goods, expands Taiwan’s purchases of U.S. energy and industrial products and includes major investment commitments in semiconductors and artificial intelligence.
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