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.