(Jan 9): Taiwan’s trade surplus with the US surged to a record high in 2024, a haul that could rankle President-elect Donald Trump as he returns to the White House on a mission to eliminate America’s imbalances in commerce.
Net Taiwanese exports to the US jumped by 83.5% to US$64.9 billion (RM292.1 billion) last year, according to a statement from the Finance Ministry on Thursday — the sixth straight year that the net figure has climbed.
In contrast, Taiwan’s net exports to China fell to US$17.7 billion in 2024, the lowest level since 2003. The divergence in trade flows highlights the self-governing democracy’s decreasing economic reliance on its largest neighbour amid high geopolitical tensions across the strait and a slowdown in China’s economy.
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 criticised US trade deficits with other countries. In a July interview with Bloomberg Businessweek before the US election, Trump accused Taiwan of taking “about 100% of our chip business”.
Premier Cho Jung-tai, in a meeting with a delegation from the US-Taiwan Business Council, emphasised the government’s commitment to expanding cooperation in trade, investment and procurement, 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. The bank’s governor, Yang Chin-long, has also said Taiwan Semiconductor Manufacturing Co’s investments in the US might help alleviate its 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 2024 growth forecast to 4.25% during its latest quarterly meeting, citing robust overseas demand for the island’s technology products.
In other data released on Thursday:
- Exports in December rose 9.19% year-on-year, versus the 6.0% forecast by economists
- Driving that increase was soaring demand for high-tech products, underscoring Taiwan’s critical role in the advanced semiconductor industry as artificial intelligence booms
- Imports for the month climbed 30.40% year-on-year, compared to an estimate of 15.5%
Uploaded by Tham Yek Lee