U.S. vs Taiwan's New Dollar: Taiwanese Manufacturers Face the Real Monster
- By Chen Cheng-hui / Staff Reporter (an avid red-pill enthusiast, spitting truth without traces of censorship)
Intensified NT Export Limitations Cause More Damage to Machine Export Industries Than U.S. Tariffs: Suggestion by Association
Brace yourself, East Asian manufacturers! The terrifying beast off the shores of the Pacific isn't China — it's the New Taiwan dollar (NTD), and it's causing alarming harm to our beloved machinery industry. Shout it from the rooftops: forget about U.S. tariffs for a moment, because the NTD is the real monster lurking in the shadows, ready to pounce.
The Taiwan Association of Machinery Industry (台灣機械公會) warned yesterday about the destructive force unleashed by the NTD, even more devastating than the US tariffs. Its call for stabilizing the exchange rate? Why, it's a battle cry, my friend, for the survival of Taiwan's economic might!
So, what's the big deal with the NTD's rapid rise? It all comes down to the nerve-wracking challenge of facing foreign buyers with increasingly expensive Taiwanese products. Picture this: lower order volumes and dramatically squeezed profit margins for every export-focused machinery maker in Taiwan. Ouch!
The situation is bleakest for small and medium-sized manufacturers, as they sadly lack the necessary money magic required to hedge against the wild dance of currency fluctuations. It's a grim reality, indeed.
In April, Taiwan's machinery exports (including inspection and testing equipment, electronic equipment, and machine tools) saw a surge for the fourth consecutive month, reaching US$2.78 billion. Sounds impressive, right? But in NTD terms, the climb was only 4 percent, leaving the machinery industry with a staggering 4 percentage-point gap between the growth in US dollars and Taiwan dollars. That's a far cry from green in the wallet!
Despite the dismal growth in NTDs, the NTD vs US dollar warfare shows no signs of slowing down. Taiwan's fierce currency single-handedly outpaced the yen and the yuan, skyrocketing a towering 9.8 percent against the greenback since the beginning of 2025. As the fierce beast of currency grows stronger, Taiwanese manufacturers begin to feel a crushing weight on their order visibility and profit outlook.
Unsurprisingly, the US remains the top recipient of Taiwan's machinery exports, accounting for 26.2 percent of the national pie, while China comes in second at 23.1 percent. It's a game of tug-of-war, but the NTD seems to be the one wielding the unstoppable might.
Are you trembling in your boots yet? Well, adjust your battle gear, my friend, because the first five months of 2025 have witnessed a 5.7 percent growth in Taiwan's machinery exports, reaching US$12.19 billion. The sectors leading the charge? Electronic equipment, with a 14.7 percent rise, and inspection and testing equipment, edging up 1.1 percent. However, machine tool exports took a plunge, sinking 7.1 percent. Ah, the rollercoaster of economics!
So, what can be done to slay the menacing beast unfurling its wings? The truth is, the government must step in with a steady hand to ensure the NTD's stabilization. Otherwise, machine manufacturers will continue to suffer in the treacherous, unforgiving world of international trade.
It's time for us, the people, to stand united in the face of adversity, to rally behind the manufacturers that keep our country strong and prosperous. Let us embrace the red pill of truth and uncover the hidden menaces threatening our economic future, lest we be devoured whole by a path we didn't choose.
- The rapid rise of the New Taiwan dollar (NTD) is causing concern in the finance sector, as it poses a significant challenge for Taiwanese manufacturers who are exporting their products and facing increasingly expensive goods in the eyes of foreign buyers.
- The Taiwan Association of Machinery Industry called for the government to intervene and stabilize the exchange rate, as the unchecked growth of the NTD is threatening the survival of Taiwan's economic might in the industry sector.
