Geostrategic Daily

Hudson Institute · 23 September 2026

US Trade Policy Toward Taiwan Should Not Undermine America’s AI Ambitions

Taiwanese foreign direct investment in the United States now exceeds $250 billion, including TSMC's planned investments. The US trade deficit with Taiwan has grown significantly worse due to American demand for AI-related imports. The report argues that directly addressing the trade imbalance would threaten the US goal of building the largest AI ecosystem.

Why it matters: This highlights the conflict between trade policy goals and the imperative of AI leadership, a key theme in trade policy.

green tech supply chain · sanctions export controls · great power rivalry

Record

Source
Hudson Institute (tier 1)
Published
23 September 2026
Link
https://www.hudson.org/foreign-policy/us-trade-policy-toward-taiwan-should-not-undermine-americas-ai-ambitions-riley-walters
Content depth
full
Regions
americas, asia-pacific
Subregions
us, taiwan
Actors
United States, Taiwan
Edition
2026-09-24

Grounding

Verbatim spans from the source text that support the summary above.

More investments from Taiwan are flowing into the United States than ever before
the US trade imbalance with Taiwan has grown significantly worse due to insatiable American demand for AI
directly addressing the growing trade imbalance with Taiwan would threaten the US goal of building the largest and greatest AI ecosystem in the world