Legislature holds up NT$410 billion special bill as U.S. tariffs loom

Taipei, July 4 (CNA) Taiwan's Legislature has postponed deliberation of a special bill that would allow the government to allocate up to NT$410 billion (US$14.2 billion) to invest in the country's security and mitigate the potential impact of U.S. "reciprocal" tariffs.

At a news conference on Friday, Wang Hung-wei (王鴻薇), a lawmaker from the main opposition Kuomintang (KMT), said her party and the Taiwan People's Party (TPP) had agreed to put the bill on hold pending the outcome of tariff negotiations between Taiwan and the U.S.

"[We should] wait until the tariff negotiation yields an outcome and consult broadly with industries for their impact assessment before deciding how to proceed [with the bill]," she added.

The KMT and the TPP, which together hold a majority in the Legislature, later secured the ruling Democratic Progressive Party's agreement at a meeting on the legislative floor, thereby preventing the bill from being put to a vote until later next week.

The reciprocal tariffs pledged by U.S. President Donald Trump against over 170 nations have been paused for 90 days until July 9. Trump has said Washington would begin notifying countries of the duty rates they face starting Friday.

At the news event, Wang, currently the secretary-general of the KMT legislative caucus, expressed concern that Taiwan would receive treatment similar to Vietnam, with severe economic consequences.

Trump announced earlier this week that the U.S. had reached an agreement with Vietnam.

Under the deal, goods sent from Vietnam to the U.S. would face a 20 percent levy, down from the originally proposed 46 percent, while American products would be allowed to enter Vietnam tariff free.

The Cabinet-proposed bill, originally designed to help Taiwanese exporters absorb potential tariff shocks, has since grown from NT$88 billion to NT$410 billion to include NT$150 billion for military and coast guard system upgrades and NT$100 billion in aid for the financially struggling Taiwan Power Co. (Taipower).

The bill has drawn criticism from the opposition, which argued that much of the proposed spending is unrelated to trade relief.

The KMT and the TPP have each submitted separate versions of the bill alongside the proposal put forth by the Cabinet in late April, proposing cash handouts of NT$10,000 and NT$6,000, respectively, to each Taiwanese national.

Once the finalized bill clears the Legislature, the Cabinet will have to submit an appropriation bill to authorize the actual disbursement of funds.