KMT calls on government to more than double tariff bailout budget

Taipei, April 10 (CNA) Taiwan's main opposition Kuomintang (KMT) on Thursday demanded that the ruling Democratic Progressive Party (DPP) raise the budget for the government's bailout plans from NT$88 billion (US$2.68 billion) to NT$200 billion, in light of the potential economic impact from tariffs imposed by the United States.

KMT Chairman Eric Chu (朱立倫) on Thursday called a meeting of mayors and county commissioners from the 16 administrative regions held by the party in the wake of the 32 percent tariffs announced by U.S. President Donald Trump on April 2, which were postponed for three months Wednesday.

Following an hour-long closed-door discussion, Chu, flanked by KMT mayors, county commissioners and deputy commissioners, read a joint statement detailing proposals put forward by the KMT officials.

First, the DPP administration should increase the budget for the bailout plans to NT$200 billion to stabilize financial markets, provide low-interest loans and tax benefits for industry, Chu said.

Chu also said the NT$500 billion National Financial Stabilization Fund to stabilize the local stock market should be increased as it is no longer sufficient, partly due to the stock market having undergone a significant expansion compared to when the fund was established.

The government should immediately introduce a visa-waiver program to allow international visitors to spend up to a month in Taiwan visa-free, Chu said.

Furthermore, the government should resume accepting applications from Chinese tour groups to visit Taiwan, something it has been unable to get China to agree to since the COVID-19 pandemic started to ease, he said.

It should issue NT$10,000 cash handouts to members of the public as an economic stimulus to boost internal demand, he added.

The government should initiate trade negotiations with the U.S. and other countries while prioritizing "vulnerable" industries such as fisheries and agriculture in such dealings, with central and local governments dispatching "procurement delegations" to the U.S., according to Chu.

The government should diversify Taiwan's export markets and help the country join international economic blocs and strike free trade agreements, he said.

It should also devise policies to keep key technologies and industries in Taiwan and "very strictly" review any plans to invest overseas, he added.

President Lai Ching-te (賴清德) should call a national affairs conference attended by experts, industry representatives, and local government heads to discuss strategies in response to the economic challenges, Chu said.

The above-mentioned demands not only apply to Trump's tariffs, but to other economic challenges, including a looming currency exchange war with the U.S., calls from Washington for Taiwan to significantly hike defense spending, and potential pitfalls facing the large amount of U.S. treasury bonds in Taiwan's foreign exchange reserves, Chu said.