Taiwan Overtakes Germany as 4th-Largest U.S. Trade Partner

Taiwan has surpassed Germany to become the United States’ fourth-largest trading partner through the first 10 months of last year, according to the latest U.S. trade statistics cited at the Ministry of Economic Affairs’ annual press conference on Tuesday.

The island now ranks behind only Mexico, Canada, and China in total goods trade with the United States, underscoring the continued deepening of Taiwan–U.S. economic ties.

Trade Bureau Director-General William Liu (劉威廉) expressed optimism about export performance this year, citing sustained structural demand driven by the global artificial intelligence boom as a key factor supporting further growth in bilateral trade.

The recently concluded Taiwan–U.S. Economic Prosperity Partnership Dialogue (EPPD) covered a broader range of topics than in previous sessions, Liu said. Discussions included AI supply chain security, critical minerals, and unmanned aerial systems supply chains.

The Trade Bureau will play a coordinating role in follow-up efforts, integrating resources from the Ministry of Digital Affairs, the Department of Industrial Technology, the Industrial Technology Research Institute (ITRI), and the Taiwan Excellence Alliance for Unmanned Aerial Systems. Dedicated working groups may be established to further align with U.S. counterparts.

Critical Minerals and “Urban Mining”

As part of efforts to strengthen supply chain resilience, Taiwan is advancing a dual-track strategy on critical minerals, combining “urban mining” initiatives with overseas mineral resource cooperation.

ITRI is developing technologies to extract valuable materials from electronic waste, while Taiwan is also seeking partnerships with the United States and allied countries to collaborate on mineral resource development.

Expanding AI and Drone Cooperation in Europe

In the intensifying global AI competition, Taiwan is leveraging its key role in server manufacturing to consolidate its position in the U.S. market while exploring emerging AI infrastructure opportunities in Europe.

The Trade Bureau plans to assist Taiwanese companies in connecting with governments in Poland and the Baltic states to participate in sovereign AI and high-performance computing initiatives.

Drone exports are seen as a particular growth area in Europe. Taiwan’s drone exports approached US$100 million last year, with Poland emerging as the largest single export destination and showing strong growth momentum.

Supporting Broader Industrial Resilience

While the technology sector has been a major growth driver, the Trade Bureau emphasized the importance of maintaining balanced export development beyond the information and communications technology (ICT) industry.

A two-year resilience budget totaling NT$95 billion (approximately US$3 billion) has been allocated to support traditional industries in strengthening overseas market presence, expanding distribution channels, and increasing participation in international trade exhibitions.

Officials said the government will continue working across multiple policy pillars to safeguard Taiwan’s strategic position within the global trading system.

（Related： Taiwan's Defense Budget Standoff Reveals Deeper Strategic Vulnerabilities ｜ Latest ）

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