President Meets with TMBA Leadership; Pledges Continued Support Following Successful Taiwan-U.S. Tariff Negotiations
President Lai Ching-te Meets with Taiwan Machine Tool & Accessory Builders’ Association (TMBA); Highlights Success in U.S.-Taiwan Tariff Negotiations and Future Strategic Alignments
President Lai Ching-te received the delegation of the Taiwan Machine Tool & Accessory Builders’ Association (TMBA) this afternoon (the 20th). During the meeting, the President announced that tariff negotiations between Taiwan and the United States concluded last Friday, finalizing a reduction of tariffs on Taiwanese exports to the U.S. to 15% without cumulative surcharges. This development provides robust support for the industry. President Lai expressed his hope that all Taiwanese industries will align with the nation’s strategic direction to create win-win outcomes, enabling businesses to remain rooted in Taiwan while expanding their global footprint and marketing to the world.
In his remarks, the President first extended his gratitude to the TMBA, under the leadership of Chairman Patrick P. Chen and with the support of all members, for serving as a vital bridge between the government and the industry. Their efforts have assisted the government in implementing policies that remain attuned to public opinion and industry requirements. He noted that the machine tool industry is an indispensable cornerstone of Taiwan’s manufacturing ecosystem; from precision components to complete systems, the industry supports production and upgrading across all sectors, linking the overall competitiveness of Taiwan’s industries.
The President stated that in recent years, shifts in geopolitics, the restructuring of supply chains, and new trade competitions have presented significant challenges. However, the machine tool industry has remained steadfast, demonstrating remarkable resilience and prowess, ensuring that Taiwan continues to hold a key position in the international market—an achievement that deserves both admiration and gratitude.
Regarding the tariff issue, the President pointed out that through inter-ministerial efforts led by Premier Cho Jung-tai and the negotiating team headed by Vice Premier Cheng Li-chiun, a tariff agreement was reached with the United States last Friday. Concerning the machine tool and accessory sectors, a reciprocal tariff agreement has been finalized. Tariffs on exports to the U.S., previously as high as 32% and initially targeted for 20%, have now been confirmed at 15% without cumulative surcharges. The President hopes that, building upon this foundation, the government and industry will continue to move forward together to foster even greater prosperity.
President Lai further noted that while the reciprocal tariff negotiations have concluded, the government will continue to implement supporting measures. A special budget of NT$93 billion has been allocated. This budget, proposed by Premier Cho’s team after consulting with industry leaders in response to the U.S. tariff proposals, covers four major pillars: talent cultivation, financial support, employment stabilization, and international market expansion. Should the industry have further needs in the future, they may apply through existing mechanisms; the government will consistently stand with the industry.
The President mentioned that the government allocates over NT$10 billion annually to assist small, medium, and micro-enterprises (SMMEs) in pursuing digital and net-zero transformations and expanding into international markets. Regarding digital transformation, the Executive Yuan recently introduced the "Ten New AI National Projects," a key focus of which is assisting SMMEs in adopting artificial intelligence to enhance competitiveness. He looks forward to the TMBA’s future alignment with national policies.
The President also highlighted the government’s push for defense industry self-reliance, noting a proposed NT$1.25 trillion eight-year special defense budget. The objectives include building "Taiwan’s Shield," establishing an AI-driven offensive and defensive system, and nurturing the defense industry. He invited industry players to participate in these efforts. In the space industry, "FORMOSAT-8" is the first satellite constellation domestically produced by Taiwan. The government will continue to launch satellites and promote the development of low-earth orbit (LEO) communication satellites, and all sectors are encouraged to actively invest.
Finally, the President noted that the Robot Industry Alliance has been officially established and expressed his hope that the machine tool and accessory industry will actively join and align with the nation’s development goals. The government will support industrial upgrades and transformation through budgetary measures, and the results of these transformations will, in turn, address national needs, creating a virtuous cycle. The President encouraged all parties to work together to realize the vision of "Rooting in Taiwan, Laying out Globally, and Marketing to the World."
The delegation was led by TMBA Chairman Chen Shen-teng and accompanied by Minister of Economic Affairs Kung Ming-hsin. Secretary-General to the President Pan Men-an was also in attendance.
