Machine tool sector wants lower gov't financial aid bar for new U.S. tariffs

Taipei, April 7 (CNA) The Taiwan Machine Tool & Accessory Builders' Association (TMBA) on Monday called on the government to make it easier for industries affected by U.S. tariffs to apply for financial help.

U.S. President Donald Trump on last Wednesday announced 32 percent tariffs on Taiwanese goods, sending Taiwan stocks tumbling nearly 10 percent on Monday, the first trading session after the market closed for the four-day Tomb Sweeping Day and Children's Day long weekend.

In a statement, the TMBA said that the U.S. tariff policy posed unprecedented challenges for Taiwan's exporting industries, with the impact particularly far-reaching for the export-oriented machine tool and accessory industries, which are dominated by small- and medium-sized enterprises (SMEs).

The association said it hoped Taiwan's government would adjust its policies according to the current challenges facing the sector and help businesses deal with the impact of U.S. tariffs.

The TMBA called for the relaxation of the eligibility criteria for industries applying for government financial assistance or loans, saying that the proposed threshold of a 15 percent decline in business revenues was too high.

In addition, the government should maintain existing subsidy and loan schemes for businesses to invest in technical upgrades, digital transformation and net-zero transition, the association said.

The TMBA added that the government should work to expand domestic demand and diversify export markets by investing in public infrastructure projects to spur automation upgrades and smart manufacturing as well as encourage the use of domestically made machine tools and spare parts.

It also said the government should help set up a consultation platform to help various industries to cope with the new U.S. tariffs, including coming up with new strategies for logistics realignment, customs clearance and export market transfers.

Moreover, the association called on the government to foster talent needed for green manufacturing and the development of artificial intelligence (AI) applications to promote sustainability in the manufacturing supply chain.

(By Chung Jung-feng and Evelyn Kao) Endtiem/ASG