Taiwan’s Premier Cho Jung-tai on Thursday proposed a significant expansion of the government’s economic relief efforts, unveiling a new special budget of up to $10 billion to help the island nation cushion the potential impact of US tariffs.
Speaking at a news conference in Taipei, Premier Cho announced that the original T$88 billion ($2.71 billion) aid package would be increased to as much as T$410 billion ($12.61 billion). The funds are expected to support struggling businesses, protect jobs, and subsidise electricity costs, in a bid to stabilise the economy amid trade tensions with the United States.
The announcement follows the temporary suspension of a 32% tariff hike that had been scheduled to take effect two weeks ago under former US President Donald Trump’s “reciprocal tariffs” strategy. The tariffs have been paused for 90 days, giving Taiwan a narrow window to negotiate favourable terms and implement domestic support measures.
The proposed special budget must still secure approval from Taiwan’s parliament, which is dominated by opposition parties. These parties have already imposed heavy cuts on the main government budget this year, criticising what they describe as excessive and inefficient spending.
Meanwhile, Taiwan’s government has intensified dialogue with Washington, offering to reduce its large trade surplus by increasing purchases of US goods. President Lai Ching-te confirmed earlier this week that the negotiations are focusing in part on boosting imports of American natural gas and oil.
The expanded aid package signals Taipei’s intent to soften the blow of protectionist US trade policies while reinforcing economic resilience and preserving key industries.
Melissa Enoch
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