Taiwan's Export Surge: AI and Pre-Trump Tariffs Fuel Unexpected Growth

Taiwan's exports rose by 4.4% in January, exceeding expectations due to high AI demand and rush orders preceding Trump's presidency. Major suppliers, including TSMC, capitalized on AI components, contributing to 15 consecutive months of growth. Despite geopolitical uncertainties, officials project optimism for the year's export performance.

Taiwan's export figures for January surpassed predictions, driven by strong demand for artificial intelligence technology and a preemptive surge in orders before Donald Trump's presidential inauguration, which sparked new trade tariffs.

The country's exports increased by 4.4% from the previous year, totalling $38.71 billion, according to the finance ministry's latest reveal on Friday—outperforming the 3.5% growth forecasted by a Reuters poll. Although this growth is lower than December's 9.2% rise, it marks the fifteenth consecutive month of increased exports, highlighting the contribution of tech giants like TSMC.

Ministry spokesperson Beatrice Tsai attributes the unexpected rise to AI demand and order rush before Trump's January 20th inauguration. She noted a rare surge in orders—a third higher than the same period last year—including those omitted during the Lunar New Year holiday. Despite tariffs and geopolitical risks presenting uncertainty, the ministry remains optimistic about export momentum for the coming year.

(With inputs from agencies.)