Taiwan May Exports Hit Record on AI Demand and Ahead of US Tariffs

A man rides a motobike on the street with wind turbines in the background, in Changhua, Taiwan May 9, 2025. REUTERS/Ann Wang
A man rides a motobike on the street with wind turbines in the background, in Changhua, Taiwan May 9, 2025. REUTERS/Ann Wang
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Taiwan May Exports Hit Record on AI Demand and Ahead of US Tariffs

A man rides a motobike on the street with wind turbines in the background, in Changhua, Taiwan May 9, 2025. REUTERS/Ann Wang
A man rides a motobike on the street with wind turbines in the background, in Changhua, Taiwan May 9, 2025. REUTERS/Ann Wang

Taiwan's exports surged to a record in May on booming demand for artificial intelligence and as customers placed orders ahead of US tariffs which could take effect next month after a suspension period expires.

Exports increased 38.6% from the same month a year ago - the fastest pace in almost 15 years - to $51.74 billion, a record high and the first time the value of exports has exceeded $50 billion, the finance ministry said on Monday.

The expansion, the 19th consecutive monthly gain, was higher than the 25% expected by economists in a Reuters poll and surpassed April's 29.9% rise.

Taiwan companies such as TSMC , the world's largest contract chipmaker, are major suppliers to Apple , Nvidia and other tech giants.

May exports benefited from continued strong AI demand and customers bringing forward orders to hedge against the possibility of increased U.S. tariffs, the ministry said in a statement.

US President Donald Trump planned a 32% import levy on goods from Taiwan under his global tariff regime, until he announced a 90-day pause in April to allow for trade negotiations.

While AI and other new technologies should continue to support Taiwan's exports, the uncertainty surrounding the US tariffs and geopolitical risks could undermine the global economic outlook, the ministry said.

For June, the ministry expects exports to rise between 15% and 25% year-on-year.

In May, Taiwan's exports to the United States soared 87.4% year-on-year to $15.52 billion, a record in terms of growth and value, versus a 29.5% surge in the prior month.

Exports to China, Taiwan's biggest trading partner, climbed 16.6%, after rising 22.3% in April.

Taiwan's total exports of electronic components gained 28.4% in May on the year to $17.2 billion, with semiconductor exports up 30.1%.

Imports rose 25% to $39.13 billion, lower than economists' forecasts of 30.2%.



Pope Leo Warns Politicians of the Challenges Posed by AI

This handout photograph taken and released by the Vatican Media on June 21 2025, shows Pope Leo XIV delivers his speech as he meets with participants in the Jubilee of the Rulers, in The Vatican. (Handout / Vatican Media / AFP)
This handout photograph taken and released by the Vatican Media on June 21 2025, shows Pope Leo XIV delivers his speech as he meets with participants in the Jubilee of the Rulers, in The Vatican. (Handout / Vatican Media / AFP)
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Pope Leo Warns Politicians of the Challenges Posed by AI

This handout photograph taken and released by the Vatican Media on June 21 2025, shows Pope Leo XIV delivers his speech as he meets with participants in the Jubilee of the Rulers, in The Vatican. (Handout / Vatican Media / AFP)
This handout photograph taken and released by the Vatican Media on June 21 2025, shows Pope Leo XIV delivers his speech as he meets with participants in the Jubilee of the Rulers, in The Vatican. (Handout / Vatican Media / AFP)

Pope Leo warned politicians on Saturday of the challenges posed by the rise of artificial intelligence (AI), addressing its potential impact on younger people as a prime concern.

Speaking at an event attended by Italian Prime Minister Giorgia Meloni and parliamentary delegations from 68 countries, Leo revisited a topic that he has raised on a number of occasions during the first few weeks of his papacy.

"In particular, it must not be forgotten that artificial intelligence functions as a tool for the good of human beings, not to diminish them or even to replace them," Leo said at an event held as part of the Roman Catholic Jubilee or Holy Year.

AI proponents say it will speed up scientific and technological progress and help people to carry out routine tasks, granting them more time to pursue higher-value and creative work.

The US-born pontiff said attention was needed to protect "healthy, fair and sound lifestyles, especially for the good of younger generations."

He noted that AI's "static memory" was in no way comparable to the "creative, dynamic" power of human memory.

"Our personal life has greater value than any algorithm, and social relationships require spaces for development that far transcend the limited patterns that any soulless machine can pre-package," he said.

Leo, who became pope in May, has spoken previously of the threat posed by AI to jobs and has called on journalists to use it responsibly.