In a recent report released in August by the Directorate General of Budget, Accounting and Statistics of the Republic of China (Taiwan), the estimated economic growth rate (GDP) for the second quarter of this year was revealed to be 8.01%, placing Taiwan at the top among the four Asian Tigers. Chairman of Taiwan’s Caijing Media, Xie Jinhe, stated that Taiwan’s exports in August for the first time surpassed South Korea, marking a significant milestone amidst the escalating trade tensions spurred by U.S. President Donald Trump’s tariff policies, suggesting potential profound shifts in global trade dynamics for the year.
Xie Jinhe took to Facebook to express his excitement over Taiwan’s historic achievement of exceeding South Korea’s monthly export numbers for the first time. He highlighted the impressive growth in Taiwan’s exports, which reached a value of $58.49 billion in August, marking a remarkable 34.1% year-on-year increase. Despite initial expectations of a slowdown in the second half of the year following early stockpiling due to tariff concerns, Taiwan’s export sector continues to thrive, propelled by the wave of advancements in artificial intelligence.
The comparison between the August export figures of Taiwan and South Korea emphasized the significance of Taiwan’s achievement. Xie Jinhe noted that South Korea had been consistently ahead of Taiwan in export performance. However, the tables turned in August, with Taiwan’s export value surpassing South Korea’s, a momentous milestone in the history of trade competition between the two nations.
The impact of advancements in artificial intelligence was particularly notable in Taiwan’s information and communications technology (ICT) sector. In August, ICT exports surged to $23.358 billion, reflecting a remarkable 79.9% year-on-year increase, with semiconductor-related electronic components contributing significantly at $20.391 billion, up by 34.6%. The total ICT exports for the first eight months of the year rose by 69% to $149.5 billion, with electronic component exports totaling $137.497 billion, representing a 25.4% increase. The ICT and semiconductor exports accounted for an impressive 77.49% of Taiwan’s total export volume, reaching a historical peak.
The demand for semiconductors and servers remains strong, driven by the surge in AI-enhanced procurement activities. Taiwan’s exports to the United States have been steadily climbing, with August figures totaling $19.63 billion, reflecting a 65.4% increase year-on-year, bringing the total exports to the U.S. in the first eight months to $117.176 billion. Furthermore, with an export value of $15.193 billion in August, the proportion of exports to the U.S. increased to 33.6%, while exports to China and Hong Kong accounted for 26%. The escalating exports to the U.S. place Taiwan on the forefront of the trade landscape amidst the challenges posed by the Trump administration’s tariff policies.
In 2024, Taiwan’s total exports reached $475 billion, ranking 16th globally in export performance and 18th in import volume at $394.4 billion. Combining the total trade volume of $869.4 billion, Taiwan holds the 18th position in the global rankings. Despite a population of only 23 million, Taiwan’s status as a major trading nation is undeniably prominent on the world stage.
From January to August this year, Taiwan’s total exports reached $398.43 billion, marking an impressive 29.25% year-on-year growth. Xie Jinhe predicts that Taiwan’s total exports for the year 2025 will exceed $600 billion, potentially surpassing Singapore and closing in on Hong Kong and South Korea, positioning Taiwan as the 15th largest exporting country globally.
As Taiwan celebrates its export achievements, China’s August export performance was also disclosed by the authorities, revealing a notable decline of 33.1% in exports to the United States. This downturn underscores a shift in Chinese export patterns, redirecting trade flows towards other regions in response to the U.S. tariff measures. Under the shadow of President Trump’s tariff policies, the global trade landscape is poised for significant transformations, presenting both opportunities and challenges for Taiwan. Behind the numbers often lies a delicate interplay of fortunes and setbacks.