On the 2nd of this month, the New Taiwan Dollar surged 9.53 cents against the US dollar, a significant increase of 3.07% in a single day, marking the highest single-day appreciation in 36 years. This news has raised concerns among many machinery exporters. The chairman of Taiwan's Machinery Industry Association, Chuang Ta-li, and the chairman of Heda Group, Shen Guorong, urged the government to maintain the exchange rate above 30 NT$ to avoid dire consequences.

Chuang explained that the Taiwanese machinery and tool industries have been discussing the issue of the New Taiwan Dollar's exchange rate for years, and there is a consensus that the exchange rate must remain above 30 NT$. Shen warned that if the New Taiwan Dollar continues to appreciate by 10% to 15%, companies might endure it, but surpassing 30 NT$ would severely impact operations.

Since April 9, Taiwan's tool and machinery exports to the US have faced a 10% tariff, applying to both the east and west coasts. The gross margin for Taiwan's tool and machinery industry is only about 20% to 25%, and with the rapid appreciation of the New Taiwan Dollar, most businesses may face losses if the exchange rate surpasses 30 NT$. Furthermore, if it rises to 27-28 NT$, over half of the companies could risk bankruptcy. The secretary-general of the Machinery Industry Association, Hsu Weng-tung, also stated that they have repeatedly advised the government about the significant impact of exchange rates on machinery exports.