Trading Partner Portal: Taiwan
Overview
Remarks by AIT Chair Rosenberger at the California Chamber of Commerce International Trade Forum
American Institute in Taiwan, May 8, 2024
U.S., Taiwan Strengthen Ties at Inaugural Trade Meeting in Washington
CalChamber, June 28, 2022
Interview Series Featuring California’s Key Trading Partners – Featuring Ming-Chi Scott Lai, TECO Director General in San Francisco:
Shared Interest in High Tech, Ag Products Elements in Close Economic Collaboration
CalChamber, August 21, 2020
Forum Examines Role of Taiwan, U.S. in Post-Pandemic Supply Chain Restructuring
CalChamber, December 8, 2020
Trade Overview
The rapid economic rise of Taiwan, also known as Chinese Taipei, during the latter half of the 20th century and into the 21st century is attributable to its strong emphasis on trade. Strong export sectors include electronics, machinery, and petrochemicals.
Taiwan boasts a population of 23.97 million, with a net trade surplus and has the world’s fifth largest foreign reserves. Nominal GDP in 2024 was $801.52 billion.
Taiwan is a member of the World Trade Organization (WTO), the Asia Development Bank, and the Asia-Pacific Economic Cooperation (APEC) forum. It also has observer status in the Organization for Economic Cooperation and Development (OECD).
U.S. – Taiwan Trade
Two-way goods trade between Taiwan and the U.S. totaled $256.09 billion in 2025.Taiwan is the 10th largest export market for the U.S. with exports to Taiwan equaling $54.67 billion. Top export categories included computer and electronic products ($2.63 billion), non-electrical machinery ($7.50 billion), oil and gas ($6.60 billion), transportation equipment ($4.39 billion), and chemicals ($3.36 billion). The U.S. is Taiwan’s second largest trading partner and a key destination for Taiwanese investors.
The U.S. imported a total of $201.42 billion in 2025 from Taiwan, with computer and electronic products being the majority of the total at $162.03 billion. Other top imports being non-electrical machinery ($8.12 billion), fabricated metal products ($6.28 billion), electrical equipment, appliance & equipment ($4.80 billion), and transportation equipment ($4.32 billion).
Services trade between Taiwan and the U.S. totaled $28.28 billion in 2025, with exports from the U.S. totaling $14.9 billion. Top exports were travel, transport, charges for intellectual property use, other business services, and maintenance and repair services.
Services imports from Taiwan to the U.S. totaled $13.38 billion, with top imports from Taiwan to the U.S. being transport, travel, other business services, telecommunications, computer and information services, and financial services.
California – Taiwan Trade
California exported over $14.3 billion to Taiwan in 2025, an over fifty percent increase from $9.56 billion in 2024. Top categories included computer and electronic products ($8.02 billion), non-electrical machinery ($1.86 billion), transportation equipment ($1.38 billion), electrical equipment, appliances, & components ($484 million), and other special classification provisions ($455 million). California is the number one exporter to Taiwan out of all U.S. states, and Taiwan is the second largest import market for California.
California imported a total of $63.47 billion from Taiwan in 2025. Top imports included computer and electronic products ($53.26 billion), non-electronical machinery ($2.31 billion), electrical equipment, appliances and components ($1.70 billion), fabricated metals products ($1.07 billion), and transportation equipment ($918 million).
FDI – Taiwan
U.S. FDI in Taiwan was $20.98 billion in 2024, while Taiwanese FDI into the U.S. was $26.11 billion in the same year. Taiwanese FDI in the U.S. supported 24,500 U.S. jobs, $193 million in research and development, and contributed $3.2 billion to expanding U.S. exports. The top industry sectors for Taiwanese FDI were semiconductors, business machines, electronic components, software and IT services, industrial equipment, and chemicals. Select USA
In California, Taiwan is the tenth largest source of FDI through foreign-owned enterprises (FOEs). In 2025, Taiwanese FOEs in California provided 21,666 jobs through 440 firms amounting to $2.75 billion in wages. The top jobs by sector are wholesale trade, professional/business services, manufacturing, transportation, warehousing, & utilities, and leisure & hospitality (World Trade Center Los Angeles FDI Report).
Other Useful Resources:
Quarterly Report on Intellectual Property Rights Protection in Taiwan
Intellectual Property Office, Ministry of Economic Affairs, April – January 2026
Trade Agreements
Trade Agreements
Taiwan holds membership with the World Trade Organization (WTO) and Asia Pacific Economic Cooperation (APEC). It is also a member of the Central American Bank for Economic Integration, Asian Development Bank (ADB), Pacific Economic Cooperation Council (PECC), and Pacific Basin Economic Council (PBEC). Taiwan is currently under review with its application to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) but continues informal engagement.
Taiwan holds free trade agreements (FTA) with 11 countries including Panama (its first FTA), Guatemala, New Zealand. It is currently negotiating other free and bilateral agreements, with its most notable with Canada, the EU, and UK.
As of February 2026, Taiwan and the United States signed an Agreement on Reciprocal Trade (ART), following the 2025 Trump Administration ‘Liberation Day’ tariffs. This agreement is the most significant in decades, as it eliminates or reduces trade barriers and close to 99% of tariff barriers.
The agreement was seen as great step toward closer economic ties between both countries, as it increased investment and commercial opportunities. The deal is not fully in force until approved by Taiwan’s legislature.
Taiwan Applies to Join Pacific Trade Deal Days After China
Bloomberg, September 22, 2021
U.S.-Taiwan Free Trade Agreement
What’s In the New US-Taiwan “Agreement on Reciprocal Trade”?
Global Taiwan Institute, February 25, 2026
Fact Sheet on U.S.-Taiwan Agreement on Reciprocal Trade
United States Trade Representative, February 12, 2026
U.S.-Taiwan Initiative on 21st-Century Trade: Negotiating Mandate
U.S. Trade Representative, August 17, 2022
United States and Taiwan Commence Formal Negotiations on U.S. – Taiwan Initiative on 21st Century Trade
U.S. Trade Representative, August 17, 2022
The Economic Case For Prioritizing A U.S.-Taiwan Free Trade Agreement
Forbes, February 17, 2021
50 U.S. Senators Call for Talks on Trade Agreement with Taiwan
Reuters, October 1, 2020
US Trade Talks a Boon for Taiwan
Taipei Times, September 7, 2020
There’s No Better Time for Taiwan to Seal a Trade Deal with the US and Bolster its Economy
South China Morning Post, September 4, 2020
Taiwan and US Move Closer to Bilateral Trade Agreement
Nikkei Asian Review, September 1, 2020
Taiwan’s Removal of Restrictions on U.S. Exports of Beef and Pork
U.S. Trade Representative, August 28, 2020
Taiwan to Seek Closer Security Ties, Trade Agreement with U.S.: Tsai
Focus Taiwan, August 13, 2020
Taiwan Seeks to Start Free-Trade Talks With U.S.
The Wall Street Journal, August 12, 2020
Trade, Security Among Top Priorities for New Taiwan Envoy to U.S.
Focus Taiwan, August 4, 2020
Events
CalChamber Met with Representatives from TECO San Francisco
CalChamber Meeting with Taiwanese Representatives
On July 2, 2018, the CalChamber met with Taiwanese representatives including Joseph Ma, Director General of the Taipei Economic and Cultural Office in San Francisco and Simon Lai, Executive Director of the Taiwan Trade Center in San Francisco. They were accompanied by representatives of the local Taiwanese business community in Sacramento.
Key Country Contacts
Resources
CalChamber Resources
Business
Business
Cultural
Cultural/Educational
A Golden Opportunity for a U.S.-Taiwan Free Trade Agreement
The Project 2049 Institute, February 2019