U.S.–Taiwan Tariff Deal Lifts Outlook for Taiwan’s Machine Tool Industry

The finalization of tariff arrangements between the United States and Taiwan has improved the outlook for Taiwan’s machine tool industry, which had been among the sectors most exposed to trade uncertainty. The Taiwan Machine Tool & Accessory Builders’ Association (TMBA) now expects exports to the US to grow by 5–8% this year, as Taiwanese suppliers regain pricing flexibility and competitive footing.

According to TMBA Chairman Patrick P. Chen, the agreement places Taiwan on equal tariff terms with key competitors such as Japan and South Korea. This parity, he argues, strengthens Taiwanese manufacturers’ negotiating position and restores confidence among overseas buyers. Under the deal, Taiwanese machine tools will be subject to a 15% tariff without additional levies, an arrangement Chairman Chen described as providing Taiwan with a clearer and more sustainable basis for competing in the US market.

Speaking at the TMBA’s industry outlook briefing, Chairman Chen said the effective reduction in tariff uncertainty would translate into tangible benefits for both machine tool makers and component suppliers this year. He added that companies exporting to the US should also reconsider their commercial strategies. While sales have traditionally been handled through distributors, he suggested that manufacturers develop their own distribution channels to improve market responsiveness and information flow.

TMBA believes the removal of trade uncertainty will stimulate activity across the upstream and downstream supply chain. Chairman Chen noted that the industry now has an opportunity to emerge from its recent downturn, adding that narrowing the gap with South Korean peers and potentially overtaking Japanese competitors was no longer out of reach.

TMBA executive and Sun Firm Machinery Industry Co. Ltd. Chairman Lin Songyi also said that fluctuations in the exchange rate have also weighed on the industry, but with tariff conditions now standardized, Taiwan’s machine tool sector will remain competitive on quality, delivery times, and technical capability.