Taiwan Trade Surplus Widens Sharply in December

Taiwan’s trade surplus widened sharply to USD 18.89 billion in January 2026, from USD 10.06 billion in the same month a year earlier, exceeding market expectations of USD 16.7 billion. Exports soared 69.9% yoy to an all-time high of USD 65.77 billion, driven by strong sales across all categories, notably in information, communication, and audio-video products (129.8%), parts of electronic products (59.8%), and base metals and articles of base metals (22.3%). Exports to the US surged 151.8%, accounting for 32.4% of total exports, after a recent trade agreement between the US and Taiwan aimed at boosting American semiconductor production in exchange for lower tariffs. Meanwhile, imports soared 63.6% to USD 46.87 billion, led by higher purchases of all major categories, in particular electronic products (63.4%), information, communication, and audio-video products (254%), and machinery (14.9%). Import growth was strongest from Mainland China and Hong Kong (54.5%) and South Korea (75.9%).

The U.S. and Taiwan signed a trade agreement on Thursday to boost American semiconductor production in exchange for lower tariffs. Under the arrangement, Taiwan Semiconductor Manufacturing will build several new factories in Arizona as part of a USD 250 billion U.S. investment, according to the U.S. Department of Commerce. In return, the U.S. will cut tariffs on Taiwanese goods to 15% from 20% and exempt chipmakers like TSMC that expand operations in America. The treaty adds to recent agreements with the European Union and Japan.

Taiwan’s trade surplus widened to USD 19.43 billion in December, up from USD 6.10 billion a year earlier and exceeding market expectations of USD 16.1 billion. Exports surged 43.4% year-on-year to USD 62.48 billion, led by robust shipments of information, communication, and audio-video products (+126.3%) and electronic parts (+24.1%). Exports to major trading partners rose sharply, including a surge to the US (+125.9%), Europe (+54.5%), Japan (+26.2%), ASEAN (+20.3%), China and Hong Kong (+11.3%). Imports increased 14.9% to USD 43.04 billion, driven by higher purchases of electronic parts (+23.3%), information and audio-video products (+100.9%), and machinery (+15.1%). Import growth was strongest from ASEAN (+31.2%), Korea (+18.7%), China and Hong Kong (+15.3%), Japan (+9.3%), and the US (+8.3%). For the whole of 2025, the trade surplus reached USD 157.14 billion, with exports increasing by 34.9% and imports rising by 22.6% year on year.