U.S. & Taiwan Seal Trade Pact to Bolster Chip Output

Taiwan’s trade surplus widened sharply to USD 12.77 billion in February 2026, from USD 6.63 billion in the same month a year earlier. However, the figure fell short of market expectations of USD 14.6 billion and marked the smallest surplus since September 2025. Exports grew 20.6% year-on-year to USD 49.8 billion, driven mainly by stronger sales of information, communication and audio-video products (38.7%) and electronic product parts (24.6%). Export growth was particularly solid to the US, surging 33.7% after a recent agreement that reduced US tariffs on many Taiwanese goods to 15%. Meanwhile, imports rose 6.8% year-on-year to USD 37 billion, largely due to higher purchases of electronic product parts (24%) and information, communication and audio-video products (81.9%). Import growth was strongest from Mainland China and Hong Kong (20.7%). For the January–February period, Taiwan recorded a trade surplus of USD 31.7 billion, with exports rising 44.5% and imports increasing 32.5%.

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.