Trade group expects 6-8% rise in machine tool exports to U.S. in 2026

Taipei, Jan. 20 (CNA) Taiwan's machine tool exports to the United States will likely rise by up to 8 percent in 2026 as uncertainties created by American tariff policies were removed after a tentative agreement on import duties was reached last week, the head of a trade group said Tuesday.

"The deal has put Taiwan and its major competitors on an equal footing," Patrick P. Chen (陳紳騰), chairman of the Taiwan Machine Tool & Accessory Builders' Association (TMBA), said at a news conference.

Chen said he expected exports of Taiwan-made machine tools to the U.S. to grow 6-8 percent in 2026, and noted that the association's goal for overall machine tool exports was 5-10 percent growth.

In a tentative trade agreement between Taiwan and the U.S. reached last week that has yet to be finalized, the U.S. has agreed to lower tariffs on Taiwanese goods from 20 percent to 15 percent, and they will not be stacked on top of existing most-favored-nation (MFN) rates.

Before the deal, Taiwan-made machine tools imported into the U.S. faced a 24 percent tariff (including MFN rates), compared with a levy of 15 percent faced by their competitors from Germany, Japan and South Korea, according to the Cabinet.

"Taiwan and the U.S.' trade negotiations made a breakthrough and that will become a turning point for Taiwan's industries," Chen said.

Taiwanese machine tool makers have had to withstand unfavorably high tariffs imposed by the U.S. in recent months, Chen said, and the lower levy is expected to help them improve their profits and give them funds for research and development and industrial upgrading.

According to the TMBA, exports of Taiwan-made machine tools totaled US$2.004 billion in 2025, down 9.6 percent from a year earlier.

China ranked as the largest buyer of machine tools from Taiwan in 2025, with US$548.64 million in purchases, down 13.0 percent from 2024, ahead of the U.S. (US$318.05 million, down 6.8 percent) and India (US$144.95 million, down 0.6 percent), TMBA data showed.