Amid the dual impact of the Taiwanese dollar's rapid appreciation and the implementation of equivalent tariffs by the U.S., Taiwan's machinery and tooling sector has announced it will temporarily halt new orders unless pricing adjustments with customers are agreed upon. This precaution aims to avert greater financial losses.

Industry leaders emphasize that tariffs and exchange rates are critical variables affecting operations, particularly the latter's sudden changes. Cheng Tai Group's Chairman, Yang De-Hua, indicated that while opportunities in non-U.S. markets remain, profitability will be eroded if the second-quarter shipments are invoiced at 30 TWD, down from the previous 32-33 TWD.

The machinery and tooling sector has struggled with recent surges in the TWD, unhedged receivables, and potential losses should exchange rates further depreciate. With imminent tariff measures likely to exceed 15%, most operators in this market may find sustaining operations increasingly challenging and will choose to pause order acceptance until a clearer tariff framework emerges.