Premier approves NT$88 billion U.S. tariff support package

Taipei, April 21 (CNA) Premier Cho Jung-tai (卓榮泰) approved an NT$88 billion (US$2.71 billion) support package aimed at mitigating the impact of higher U.S. tariffs on Taiwan's economy, the Cabinet said Monday, though details on what the plan contains remained relatively vague.

In a press release, Cabinet Secretary-General Kung Ming-hsin (龔明鑫) said the plan will offer Taiwanese companies various forms of financial support, serving as a sort of "umbrella on a rainy day."

For example, he said, the plan will help companies access low-interest trade financing, benefiting an estimated 12,000 firms, while also providing agricultural loans to around 15,600 farmers.

Companies affected by U.S.-imposed tariffs will also be able to access loans via a simplified application process, or have the payment deadline on existing loans extended, Kung said.

As for the impact on the labor market, the package will provide subsidies to workers in designated industries whose employers have to reduce their hours or place them on furlough, Kung said.

Meanwhile, the plan will also offer preferential export loans and SME loans to companies that suffered a 10 percent loss in revenues in January or February 2025 compared to the same period last year, Kung said.

Premier Cho has asked the departments responsible for administering the 20 measures contained in the package to explain them in more detail in the coming days, Kung said in the statement.

Cho's greenlighting of the support package means it will probably be approved at the Cabinet's scheduled meeting on Thursday.

After that, it will be sent to the opposition-controlled Legislature, where the largest party, the Kuomintang, has previously said it wants to expand the package from NT$88 billion to NT$200 billion.

The financial support measures are being drafted in response to U.S. President Donald Trump's announcement of sweeping global tariffs earlier this month, including a 32 percent tariff on Taiwanese goods.

Taiwan criticized the tariffs as "deeply unreasonable" and "highly regrettable," but quickly made clear that it had no plans to retaliate.

The U.S. later announced a 90-day pause on the higher "reciprocal" tariffs for most countries. Taiwan has said it plans to hold talks with the U.S. to have the tariffs reduced as much as possible.