Taipei: 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.

According to Focus Taiwan, Patrick P. Chen, chairman of the Taiwan Machine Tool and Accessory Builders' Association (TMBA), stated at a news conference that the agreement has placed Taiwan and its major competitors on an equal footing. Chen anticipates that exports of Taiwan-made machine tools to the U.S. will grow between 6-8 percent in 2026, aligning with the association's goal for overall machine tool exports of 5-10 percent growth.

A tentative trade agreement between Taiwan and the U.S., reached last week and yet to be finalized, includes the U.S. agreeing to lower tariffs on Taiwanese goods from 20 percent to 15 percent. These tariffs will not be stacked on top of existing most-favored-nation (MFN) rates. Before this agreement, Taiwan-made machine tools imported into the U.S. faced a 24 percent tariff (including MFN rates), compared to a levy of 15 percent faced by competitors from Germany, Japan, and South Korea, as stated by the Cabinet.

Chen remarked that the breakthrough in Taiwan-U.S. trade negotiations is expected to act as a turning point for Taiwan's industries. Taiwanese machine tool makers have been managing high tariffs imposed by the U.S. in recent months, but the reduced levy is anticipated to improve profits, providing funds for research, development, and industrial upgrading.

According to TMBA, exports of Taiwan-made machine tools amounted to US$2.004 billion in 2025, marking a 9.6 percent decrease from the previous year. China was the largest buyer of machine tools from Taiwan in 2025, with purchases totaling US$548.64 million, a 13.0 percent decline from 2024. The U.S. followed with US$318.05 million (down 6.8 percent), and India with US$144.95 million (down 0.6 percent), as per TMBA data.