TAIPEI (Taiwan News) — Taiwan’s machinery exports rose for a second straight month, reaching NT$83.66 billion (US$2.59 billion) in March, the Taiwan Association of Machinery Industry said Friday.

Machinery exports in March rose 24.8% from February and 6.5% year-on-year, per CNA. However, despite signs of recovery, machine tool exports remained weak at US$451 million in Q1, down 14.9%, the steepest drop among key product lines, per Liberty Times.

TAMI said the US, China, and Japan were Taiwan’s top three machinery export markets in Q1, accounting for 27.3%, 21.8%, and 8.3% of shipments. While exports to the US rose 15.2% year-on-year, shipments to China dipped 2.2%.

The US remains Taiwan’s largest export market for machinery, but uncertainty over the US’ high tariffs clouds the economic outlook. The association said the 90-day tariff delay offers only temporary relief and warned that broader economic impacts are still likely.

Following US President Donald Trump’s tariff announcement on April 2, the New Taiwan Dollar appreciated, CNA reported. A stronger currency generally reduces inflation by making imports cheaper, but it can hurt local industries by making exports less competitive.

The association urged the government to take action on exchange rate policy, warning that further appreciation could harm export performance.