TAIPEI (Taiwan News) — The US trade deficit with Taiwan reached a record NT$656.2 billion (US$20.7 billion) in July as booming investment in AI infrastructure drove a surge in technology imports.
The overall US goods and services trade deficit widened 24.4% from June to NT$2.8 trillion in July, its highest level since March 2025, according to data released Thursday by the US Commerce Department, per Liberty Times. Imports rose 2.8% to NT$12.6 trillion, while exports fell 2.1% to NT$9.8 trillion.
The department attributed the drop in exports to a decline in crude oil and gold exports. Imports were driven by a surge in capital goods, including computers, computer accessories, and semiconductors.
The US also posted record July trade deficits with Mexico, Vietnam, Thailand, South Korea, and Malaysia, Liberty Times reported.
US Commerce Secretary Howard Lutnick said Wednesday that the US was preparing a new, targeted tariff policy for semiconductors, while seeking to encourage chip production in the US.
The US remains locked in a trade conflict with neighboring Canada, though its trade deficit with Canada narrowed in July. Last month, the US imposed a 50% tariff on billions of dollars worth of Canadian goods, prompting Ottawa to prepare retaliatory measures.
