A gross budget of NT$88 billion (US$2.66 billion) would be allocated to assist the industrial and agricultural sectors to address the effects of the latest US tariff policy on Taiwan, Premier Cho Jung-tai (卓榮泰) told a news conference in Taipei yesterday.
The Cabinet unveiled government programs in support of export supply chains at the news conference after US President Donald Trump on Thursday announced a “reciprocal” tariff of 32 percent on Taiwanese imports.
The government has planned 20 measures and allocated NT$88 billion to broaden support for industries and control risks, Cho said.
Photo: Tien Yu-hua, Taipei Times
The industrial sector would receive NT$70 billion to offset administrative costs, boost industrial competitiveness, diversify markets, offer preferential taxation and stabilize employment, while NT$18 billion would go to the agricultural sector, he said.
“The Cabinet’s Trade Negotiations Office would continue to negotiate with the US government to bolster reasonable, favorable and reciprocally beneficial economic and trade relations,” Cho said.
“The Ministry of Economic Affairs, the Ministry of Finance and the Ministry of Labor should promptly put forward details about the 20 measures for people and industries to follow,” he said, adding that 190 hotlines would be set up under affiliated agencies by Tuesday next week to provide information on the Cabinet’s programs.
“Our evaluation showed that of all Taiwanese exports to the US, the manufacturing industry, including electronics and information technology, steel and other metals, machinery, vehicles and especially auto parts, building materials and domestic appliances would be materially affected by the increase in US tariffs,” he said.
As for agriculture and fisheries, exports of moth orchids, edamame, tea, tilapia, common dolphinfish and sea bass “might suffer from shrunken consumer markets or decreased competitiveness,” he added.
Given that the US’ tariff policy remains volatile, as Washington plans to lay out more details, the government would continue to observe the situation, and communicate with industries and society to propose pragmatic countermeasures, Cho said.
Vice Premier Cheng Li-chun (鄭麗君) said that the Cabinet in November last year set up a Taiwan-US economic and trade task force to monitor changes in US tariff policy, estimate the effects on industries and plan countermeasures.
The government would follow up on developments in the US’ policy for sectors such as semiconductors, pharmaceuticals and timber — which were not covered in the US’ announcement on Thursday — as well as their effects on overseas Taiwanese businesspeople, she said.
“Premier Cho has ordered agencies to announce the procedures and timelines by April 14 so industries could apply for the funding,” Cheng said, adding that the government would fully support the nation’s industries.
Minister Without Portfolio Jenni Yang (楊珍妮) said that in talks with Washington the government would focus on the complementary trade structure and high-tech strategic partnership between Taiwan and the US to seek bilateral trade balance.
It would also stress the US’ trade surplus with Taiwan in agricultural products and suggest including that surplus in the calculation of reciprocal tariffs, she added.
Asked whether a potential joint venture between Taiwan Semiconductor Manufacturing Co (台積電) and Intel would be a bargaining chip in negotiations, Cho said that the focus would be on national interests.
There is no further information about the issue and its progress, and the government would adhere to the principle of having national interests as its sole concern, he said.
Additional reporting by Lisa Wang
WAITING GAME: The US has so far only offered a ‘best rate tariff,’ which officials assume is about 15 percent, the same as Japan, a person familiar with the matter said Taiwan and the US have completed “technical consultations” regarding tariffs and a finalized rate is expected to be released soon, Executive Yuan spokeswoman Michelle Lee (李慧芝) told a news conference yesterday, as a 90-day pause on US President Donald Trump’s “reciprocal” tariffs is set to expire today. The two countries have reached a “certain degree of consensus” on issues such as tariffs, nontariff trade barriers, trade facilitation, supply chain resilience and economic security, Lee said. They also discussed opportunities for cooperation, investment and procurement, she said. A joint statement is still being negotiated and would be released once the US government has made
NEW GEAR: On top of the new Tien Kung IV air defense missiles, the military is expected to place orders for a new combat vehicle next year for delivery in 2028 Mass production of Tien Kung IV (Sky Bow IV) missiles is expected to start next year, with plans to order 122 pods, the Ministry of National Defense’s (MND) latest list of regulated military material showed. The document said that the armed forces would obtain 46 pods of the air defense missiles next year and 76 pods the year after that. The Tien Kung IV is designed to intercept cruise missiles and ballistic missiles to an altitude of 70km, compared with the 60km maximum altitude achieved by the Missile Segment Enhancement variant of PAC-3 systems. A defense source said yesterday that the number of
‘CRUDE’: The potential countermeasure is in response to South Africa renaming Taiwan’s representative offices and the insistence that it move out of Pretoria Taiwan is considering banning exports of semiconductors to South Africa after the latter unilaterally downgraded and changed the names of Taiwan’s two representative offices, the Ministry of Foreign Affairs (MOFA) said yesterday. On Monday last week, the South African Department of International Relations and Cooperation unilaterally released a statement saying that, as of April 1, the Taipei Liaison Offices in Pretoria and Cape Town had been renamed the “Taipei Commercial Office in Johannesburg” and the “Taipei Commercial Office in Cape Town.” Citing UN General Assembly Resolution 2758, it said that South Africa “recognizes the People’s Republic of China (PRC) as the sole
Taiwanese exports to the US are to be subject to a 20 percent tariff starting on Thursday next week, according to an executive order signed by US President Donald Trump yesterday. The 20 percent levy was the same as the tariffs imposed on Vietnam, Sri Lanka and Bangladesh by Trump. It was higher than the tariffs imposed on Japan, South Korea and the EU (15 percent), as well as those on the Philippines (19 percent). A Taiwan official with knowledge of the matter said it is a "phased" tariff rate, and negotiations would continue. "Once negotiations conclude, Taiwan will obtain a better
RSS