Tariff Threat, Taiwan's Exports to US Reach Record High

Official data released on Monday, June 9, showed that Taiwan's exports to the US hit a record high in May. Meanwhile, Taiwan is actively seeking an agreement with Washington to avoid high tariffs.

US President Trump imposed a 32% tariff on Taiwanese goods in April. Although this measure was later suspended for 90 days, the global 10% tariff remains effective.

Surge in Orders Under Tariff Pressure

As Taiwan and the US are actively negotiating a trade agreement, American companies are significantly increasing orders for Taiwan's high-tech products to prevent higher tariffs from taking effect next month.

Data from Taiwan's Ministry of Finance shows that exports to the US grew by 87.4% year-on-year in May, reaching $15.5 billion. Bloomberg reported that both the amount and growth rate set historical records.

Taiwan's overall export volume also reached a new high of $51.7 billion.

The data shows that exports of information, communication, and audiovisual products surged by 111.1% year-on-year, while electronic component exports increased by 28.4%.

Expert: Growth May Not Be Sustainable

"The overall export growth is impressive, but I must remind you that many orders have surged because companies are worried that the US may still reimpose tariffs on chips and some electronics that have been exempted, so they are shipping ahead," said Michelle Lam, Greater China Economist at Societe Generale, in an interview with Bloomberg. "We are likely to see a slowdown in exports later this year," she added.

To avoid the high tariffs threatened by the Trump administration, Taiwan has promised to increase investment in the US, boost purchases of US energy, and raise defense spending.

By 2024, Taiwan's trade surplus with the US reached $73.9 billion, ranking seventh globally.

About 60% of Taiwan's exports to the US are information and communication technology products, including semiconductors.

Source: AFP

Original Source: https://www.toutiao.com/article/1834525801958474/

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