Taiwan’s export sector posted an all-time monthly high in April, driven by surging global demand for high-value goods and mounting pressure from potential new tariffs proposed by the United States.
According to Taiwan’s Ministry of Finance, the island’s exports rose by 30% year-on-year to reach USD 49 billion — the highest monthly figure ever recorded in the country’s trade history.
Over a quarter of the shipments — approximately USD 13 billion — were destined for the United States. The sharp rise is attributed to a rush by Taiwanese companies to fulfil existing contracts before new import duties take effect. Last month, US President Donald Trump announced the reintroduction of what he described as “reciprocal tariffs” on goods from several key global economies, including Taiwan. Although the implementation of these duties has been suspended for 90 days, the announcement has already triggered shifts in trade behaviour.
The Ministry of Finance pointed to both immediate geopolitical concerns and longer-term structural factors behind the export surge. Chief Statistician Beatrice Tsai stated that strong international demand, particularly in sectors linked to artificial intelligence, has reinforced Taiwan’s export momentum. She emphasised the ongoing strength of Taiwanese manufacturers in both capacity and production efficiency.
“Taiwanese firms remain highly competitive in terms of production capacity and process quality,” Tsai noted. She added that export demand is expected to stay elevated into May, forecasting a year-on-year increase of between 15% and 20%.
The surge in outbound trade has also had a marked impact on the New Taiwan dollar, which recorded its strongest appreciation since the 1980s. However, the boost to exports has not entirely offset economic uncertainty. Analysts have begun revising Taiwan’s broader economic growth forecasts downward due to the risk of prolonged trade tensions with the United States.
A 32% tariff on certain Taiwanese goods is already in place, and concerns are growing over the broader consequences for the island’s export-reliant economy. Semiconductor exports, which account for a substantial portion of Taiwan’s foreign trade, are particularly vulnerable to any escalation in trade barriers.
In response to the evolving trade environment, Taiwan’s leadership has moved to strengthen ties with strategic partners. The President of Taiwan has pledged to increase procurement and investment in the United States, signalling a proactive stance in managing the fallout from Washington’s tariff threats.
There has also been a notable redirection of Taiwanese capital flows. In 2024, Taiwanese companies channelled record levels of investment into the United States and Japan. By contrast, investment in mainland China remained flat, suggesting a broader realignment of supply chains away from the Chinese market.
This shift mirrors broader regional and global trends. With geopolitical tensions and regulatory uncertainty reshaping trade and production networks, many East Asian economies have sought to reduce reliance on the People’s Republic of China. For Taiwan, these developments coincide with efforts to solidify its strategic position in the global semiconductor industry and ensure greater economic resilience.
April’s figures underscore the island’s capacity to rapidly adjust to external shocks, but the path forward remains uncertain. The upcoming decision on the enforcement of the new US tariffs, expected in mid-July following the 90-day grace period, will be a key determinant of Taiwan’s export trajectory in the second half of 2025.
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