TAIPEI (Taiwan News) — Trade between Taiwan and Italy reached US$6.08 billion (NT$190.6 billion) in 2025, rebounding to pre-pandemic levels.
Representative to Italy Vincent Tsai (蔡允中) said that in 2025, Italy was Taiwan’s 21st-largest trading partner and its fourth-largest in the EU, per CNA. Taiwan’s trade deficit with Italy widened to US$2.08 billion, though Tsai said the two economies remain structurally complementary.
Taiwan’s investment in Italy reached approximately US$75.12 million in 2025, mainly in metal manufacturing, bringing cumulative investment to US$1.68 billion. Italy invested roughly US$15.28 million in Taiwan, primarily in the financial and insurance sectors, with total investment reaching about US$170 million.
Tsai said bilateral trade dipped slightly in 2023 and 2024 due to the pandemic’s lingering effects. In 2025, however, trade returned to its pre-pandemic trajectory and is expected to continue growing annually.
Italy’s exports to Taiwan have risen steadily in recent years, with a marked increase in 2025, while Taiwan’s exports to Italy edged down.
“Of course, countries should strive for bilateral balance in their foreign trade, but some trade deficits reflect industrial integration,” Tsai explained. “Overall, the deficit is not a major trade obstacle or problem.”
Taiwan mainly imports pharmaceutical products, semiconductor equipment, leather bags and footwear, and cars from Italy. Its exports to Italy consist largely of machinery, steel products, and components.
Tsai said trade with Europe is expected to expand gradually amid shifts in global supply chains.
Tsai said that Taiwan’s investment in Italy has increased significantly over the past two years, with total investment nearing US$1.7 billion. However, most Taiwanese investment in Italy takes the form of mergers and acquisitions or joint ventures, rather than setting up factories from scratch, differing from Taiwanese business models in Southeast Asia.
Tsai explained that this type of investment is less likely to boost Taiwan’s exports to Italy because supply chains are localized, and Taiwanese firms are primarily acquiring existing Italian companies.
He said Italy’s market is an important reference point for Taiwanese companies considering investment in Europe, as Italy is a member of the EU and the G7, with a strong industrial base and manufacturing capacity. Companies can also use Italy as a gateway to the broader European market.
Tsai said that, in addition to attracting more Taiwanese investment, Italy recognizes Taiwan’s high-tech strengths and hopes to leverage Taipei’s advantages in semiconductors and AI to drive development in related industries.