The 2026 National Trade Estimate (NTE) Report signals a new era of digital friction between the US and its closest Asian allies.

Taiwan sits at a rare intersection of economic momentum and political gridlock. The island’s economy expanded 8.68% in 2025, exports hit a record US$640.75 billion, and per capita GDP is closing in on the US$40,000 threshold — largely on the back of booming global demand for AI chips and semiconductor capacity. Yet while Taiwan’s technology industry is firing on all cylinders, its legislature remains deadlocked over the government’s spending plan.

Google Research’s TurboQuant memory-compression algorithm has raised concerns that demand for AI-related memory could weaken, but South Korean experts and analysts say the market reaction may be overblown.