America's trade gap with Taiwan hit an all-time monthly high in July, driven by the AI building boom — good for Taiwan's chipmakers, bad for Washington's tariff politics.

• The US bought a record amount from Taiwan in July, pushing the gap to $20.7 billion, the highest ever for a single month.
• The cause is AI: US companies are importing far more computers, computer parts, and semiconductors.
• The overall US trade deficit jumped to its highest level since March 2025, as exports of oil and gold fell while tech imports climbed.
• Mexico, Vietnam, Thailand, South Korea, and Malaysia also set record deficits with the US in the same month.
• Commerce Secretary Howard Lutnick says new chip tariffs are coming, with a simple rule: build in America and pay nothing.

Outlook: Taiwan is one of 16 trading partners under a US trade investigation, so a fresh round of tariffs aimed squarely at chips looks likely.