On Friday, Premier Cho Jung-tai pledged NT$88 billion (US$2.66 billion) to help Taiwan’s industries and agriculture cope with new tariffs imposed by the Trump administration. These tariffs, which are set to take effect on April 9, will raise Taiwan’s trade barriers with the United States by 32%.
Taiwan has criticized these tariffs as “unfair” and has questioned the formula used to calculate the trade barriers. In response, Cho promised that NT$70 billion would go to industries, while the farming sector would receive NT$18 billion in aid. The government called for solidarity across economic sectors to mitigate the impact of these tariffs.
The Cabinet met for a marathon session beginning at 4 a.m. Thursday to discuss the issue. Afterward, a report was presented to President Lai Ching-te. Cho emphasized that Taiwan and the U.S. have long been trade partners. He stated that Taiwan would engage in discussions with the U.S. to explain its policies and trade situation, aiming for mutually beneficial solutions.
Taiwan officials said that many of the island’s exports to the U.S. were a result of American policies encouraging the growth of advanced technology sectors. However, the government had underestimated the scope of the tariffs. According to reports, the U.S. administration used a flawed formula to calculate the trade barriers.
To support industries and agriculture, the aid package will include financial assistance, reduced administrative expenses, increased competitiveness, tax benefits, and measures to ensure stable employment. However, Taiwan’s government still awaits further clarification from the U.S. on the specifics of the tariffs before finalizing its response.
Taiwan remains committed to maintaining strong trade relations with the U.S. while safeguarding its economic sectors from the impact of the new tariffs.
