Taiwan Overtakes China as Third-Largest US Import Source

US-China trade tensions, tariffs and technology controls have accelerated a “China+1” shift as companies seek to reduce manufacturing and geopolitical risk. Taiwan has emerged as a critical beneficiary because its semiconductor ecosystem and contract manufacturers supply the advanced chips, servers and other hardware needed for the US artificial-intelligence buildout. The change underscores how data-center investment is reshaping trade flows and raising Taiwan’s economic importance to Washington.

US Census Bureau data showed goods imports from Taiwan reached $24.61 billion in March 2026, surpassing the $20.86 billion shipped from China. That made Taiwan the third-largest monthly source of US imports, behind Mexico at $51.20 billion and Canada at $34.09 billion. The ranking reflects surging American demand for AI chips and servers alongside a broader push to diversify supply chains away from China.