The US imported more from Taiwan than China for the first time in decades (www.taipeitimes.com)

For the first time in decades, the US has imported more goods from Taiwan than China, a significant shift in trade dynamics largely driven by the global demand for artificial intelligence (AI) technology. In December 2024, US imports from China plummeted by nearly 44% to $21.1 billion, while imports from Taiwan soared over 100% to $24.7 billion. This shift highlights Taiwan's pivotal role in the AI supply chain, particularly in semiconductor manufacturing, as the country adapts to changing trade landscapes following the imposition of tariffs by the Trump administration. This transition is notable for the AI/ML community as it underscores Taiwan's growing importance as a key supplier of technology products, particularly chips and servers essential for AI applications. The Taiwanese economy, now on track for a remarkable 7.71% GDP growth, has benefitted from a new trade deal with the US that reduces tariffs and allows certain semiconductor products to be exported duty-free. As Taiwanese exports to the US account for roughly one-third of its total shipments, this trend not only elevates Taiwan's economic profile but also reshapes global supply chains within the tech industry, posing competitive challenges and opportunities for different markets amid a transformative AI boom.