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Taiwan’s cabinet made a planned special budget of up to NT 410 billion ($ 12.6 billion ) on Thursday to strengthen security and the country’s economy in the face of new US tariffs.
As President Lai Ching-te tries to shield Taiwan’s manufacturers from a proposed US tax of 32 %, Taipei announced its first tax conversations with the US this quarter.
After trillions of dollars were wiped off world markets, US President Donald Trump has delayed imposing penalties on several business partners, including Taiwan, for three weeks.
Trump has kept a 10 % blanket work on most nations but halted ideas for more stringent controls, with the exception of China.
Taiwan’s business deficit with the United States will be the seventh-highest of any nation, peaking at$ 73.9 billion in 2024.
About 60 % of its exports to the United States are electronics and other forms of information and communication technology systems.
Premier Cho Jung-tai stated in a statement that the special funds was in response to” the influence of US tax plan on our industries, trade structure, and overall work marketplace, as well as on social livelihood and prices.”
The cabinet announced that it would be divided into four divisions to help the industries: the employment market, the public welfare, and education. Additionally, it will strengthen resilience by enhancing maritime patrols and various defense equipment, according to the cabinet.
This designed funds, which requires political approval, may cover a recently announced NT$ 88 billion assistance package for industries hit by the new tariffs, it said.
Taiwan pledged increased investment in the US, more power payments, and more defense spending as part of Trump’s plan to avoid the charges.
In what Lai described as a “historic moment” for Taiwan-US relations, chipmaker TSMC announced last month that it would invest$ 100 billion in the US.
