Trade between the United States and Taiwan has been increasing significantly since the US-China trade war. Taiwan’s exports to the United States hit a record $72 billion.

According to the Wall Street Journal, the world’s demand for chips is increasing, which has dramatically benefited Taiwan. In addition, the U.S.’s imposition of 25% tariffs on many goods imported from China, caused Taiwanese invested electronics factories in China to return to Taiwan.

The report mentioned that Taiwan is currently the 8th largest trading partner of the United States.

Since last year, when the Trump administration imposed tariffs on China, Taiwan’s exports to the United States have quickly increased, and U.S. exports to Taiwan have also hit a new high. As of the end of September, Taiwan’s commercial exports to the United States reached a record $72 billion in 12 months, increasing about 70% year-on-year. At the same time, U.S. exports to Taiwan also increased.

The report indicates that U.S. exports to Taiwan have increased by about 35% from the US-China trade war, reaching a record high of $35 billion a year. This increase is due to Taiwan buying crude oil, machinery, and cars from the US. 

The report shows that the Biden administration still maintains trade measures against Beijing enforced under former President Trump. They continue to impose punitive tariffs on certain goods imported from China, including duties on many electronic products—as high as 25%.

According to the Wall Street Journal, since 2019, 243 Taiwanese manufacturers have returned to Taiwan. They have received government support, with more than $30 billion in investment capital. More than 70% of Taiwanese businesspeople have returned to Taiwan to invest and develop products in the electronics industry.

Ryan Hass, a senior research fellow at the Brookings Institution, said that developing investment in chip manufacturing in Taiwan would help strengthen Taiwan-US relations; this is how to deepen the bilateral relations of the two countries.

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