Since September 2024, the Federal Reserve has begun cutting interest rates, aiming to boost consumption and investment, which positively impacts machine tool demand. However, a weaker U.S. dollar may erode Taiwan’s export competitiveness. Trump’s return to power and proposed high tariffs and currency interventions could trigger a new U.S.-China trade war, creating global economic uncertainty and challenges for Taiwan’s machine tool exports. While short-term recovery opportunities exist, long-term growth depends on leveraging AI and ESG trends to explore new markets and achieve technological breakthroughs.

Since May 2024, Mainland China has suspended tariff concessions under ECFA for certain machine tool products, impacting Taiwan’s export competitiveness. Previously, the Early Harvest List helped boost Taiwan’s market share in China, but import substitution policies and slower economic growth have reduced market size. The four suspended items account for over 40% of Taiwan’s ECFA-listed exports to China, creating a significant impact. Taiwanese manufacturers must increase local production in China and actively expand into the U.S., ASEAN, EU, and North American markets, while aligning with ESG trends and promoting energy-saving and carbon reduction to maintain global competitiveness.