US trade deficit hits a record $1.2 trillion as AI hardware imports surge under the Trump administration — massive demand for chips from Asia outpaces domestic production, fueling a 60% increase in imports in 12 months

A surge in AI-related hardware imports, particularly from Asian semiconductor hubs like Taiwan, has driven the U.S. trade deficit to a record $1.2 trillion in 2025. Despite efforts by the Trump administration to rebalance trade using tariffs, the U.S. struggles to meet the demand for chips in AI applications, leading to a 60% increase in imports. The U.S. imported over $450 billion in computer hardware and semiconductors in 2025, with overall electronics imports reaching $3.4 trillion. While investments in American chipmaking are expected to grow, it may take years to shift production from Asia to the U.S., impacting the trade deficit.