TAIPEI (Taiwan News) — Taiwan’s machinery exports rose for the third straight month in April, reaching NT$73.62 billion (US$2.42 billion), up 7.7% year-on-year, the Taiwan Machinery Industry Association reported Friday.

Cumulative exports for the first four months of the year totaled US$9.41 billion, up 4.7% compared to the same period last year, per CNA. The top three destinations were the US (26.3%), China (22.7%), and Japan (8.2%), per UDN.

While the broader machinery sector is recovering, the association said demand for machine tools remains weak. From January through April, machine tool exports dropped to US$627 million, down 10.7% year-on-year—the steepest decline among major product categories.

The association also flagged concerns about US trade policy, noting that tariff threats announced in April have rattled global markets. Although the tariffs were suspended for 90 days, the uncertainty could still impact future shipments, especially since the US is Taiwan’s largest machinery export market.

However, currency volatility poses a more immediate threat, the group said. Robust tech exports have driven the Taiwan dollar higher at a faster pace than regional peers, making it difficult for machinery exporters to hedge in time.

Between April 1 and May 8, the Taiwan dollar appreciated 8.7%, far outpacing the Korean won (4.5%), Japanese yen (2.5%), and Chinese yuan (0.5%). The association warned that the stronger currency increases Taiwan’s export prices relative to competitors, potentially softening future order volumes.

It urged the government to intervene, saying that the stronger Taiwan dollar now presents a more serious challenge than tariffs, as it undermines pricing power and cuts into already tight margins.