Taiwan’s trade surplus with the US surged to a record high last year, a haul that could rankle US President-elect Donald Trump as he returns to the White House on a mission to eliminate the US’ imbalances in commerce.
Net Taiwanese exports to the US jumped by 83.5 percent to US$64.9 billion last year, according to a statement from the Finance Ministry today — the sixth straight year that the net figure has climbed.
In contrast, Taiwan’s net exports to China fell to US$17.7 billion last year, the lowest level since 2003. The divergence in trade flows highlights Taiwan’s decreasing economic reliance on its largest neighbor amid high geopolitical tensions across the strait and a slowdown in China’s economy.
Photo: Taipei Times file photo
The widening trade imbalance with the US could make Taiwan a target of tariffs proposed by Trump as he prepares to reclaim the White House later this month. The former president has pledged to usher in a manufacturing boom and repeatedly criticized US trade deficits with other countries. In a July interview with Bloomberg Businessweek before the US election last year, Trump accused Taiwan of taking “about 100 percent of our chip business.”
Premier Cho Jung-tai (卓榮泰), in a meeting with a delegation from the US-Taiwan Business Council, emphasized the government’s commitment to expanding cooperation in trade, investment and procurement with the US, according to a statement from the Cabinet on Tuesday.
The central bank has suggested increasing purchases of US energy, agricultural goods and military equipment — a move that could align Taiwan with Trump’s demands. Central bank Governor Yang Chin-long (楊金龍) said in November last year that TSMC’s investments in the US might help alleviate Taiwan's trade imbalance with the world’s largest economy, and other Taiwanese companies could consider following suit.
Exports have remained a key driver of Taiwan’s economy. The central bank recently lifted its growth forecast for last year to 4.25 percent during its latest quarterly meeting, citing robust overseas demand for Taiwan’s technology products.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) secured a record 70.2 percent share of the global foundry business in the second quarter, up from 67.6 percent the previous quarter, and continued widening its lead over second-placed Samsung Electronics Co, TrendForce Corp (集邦科技) said on Monday. TSMC posted US$30.24 billion in sales in the April-to-June period, up 18.5 percent from the previous quarter, driven by major smartphone customers entering their ramp-up cycle and robust demand for artificial intelligence chips, laptops and PCs, which boosted wafer shipments and average selling prices, TrendForce said in a report. Samsung’s sales also grew in the second quarter, up
LIMITED IMPACT: Investor confidence was likely sustained by its relatively small exposure to the Chinese market, as only less advanced chips are made in Nanjing Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) saw its stock price close steady yesterday in a sign that the loss of the validated end user (VEU) status for its Nanjing, China, fab should have a mild impact on the world’s biggest contract chipmaker financially and technologically. Media reports about the waiver loss sent TSMC down 1.29 percent during the early trading session yesterday, but the stock soon regained strength and ended at NT$1,160, unchanged from Tuesday. Investors’ confidence in TSMC was likely built on its relatively small exposure to the Chinese market, as Chinese customers contributed about 9 percent to TSMC’s revenue last
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