The Chairman of the Executive Yuan (government) of Taiwan, Zhuo Rongtai, will present a package of support for local businesses aimed at mitigating the shock from US tariffs. According to the news portal Focus Taiwan, information on the aid could be announced as early as April 21.
“Details of the NT$88 billion (about USD2.7 billion) package, including how enterprises in the industrial, agricultural and fisheries sectors can access the support measures, will be announced on Monday“, Zhuo Rongtai was quoted as saying by the portal.
Earlier in early April, the island's authorities said the package included NT$70 billion (USD2.14 billion) to fund measures such as reducing loan interest rates, helping businesses diversify markets and stabilizing the labor market, as well as another NT$18 billion (USD552 million) in financial assistance for the agricultural sector. However, discussions are still ongoing with business representatives on exactly how this aid will be distributed.
Business support measures were promised by the island's authorities after US President Donald Trump announced "reciprocal tariffs" in early April. on imports from dozens of countries, including a 32% tax on most Taiwanese goods. Trump later suspended the tariffs for 90 days and instead imposed a reduced 10% tariff on all countries except China. Meanwhile, tariff negotiations between Taiwan and the US began on April 11, but neither side has yet revealed details of the discussions.
US exports to Taiwan in 2024 are $42.336 billion, up 6% from 2023. Imports increased by 32.5% to $116.2 billion. The US trade deficit with the island amounted to 73.92 billion USD, which is an increase of 54.6% year-on-year. This situation causes discontent in Washington. At the same time, Taipei considers the 32% tariffs announced by the US on Taiwanese goods to be unfair. The island has been governed by its own administration since 1949, when the remnants of the Kuomintang forces led by Chiang Kai-shek (1887-1975) fled there after being defeated in the Chinese Civil War. According to Beijing's official position, supported by most countries, including Russia, Taiwan is one of the provinces of China.