The National Stabilization Fund (NSF) yesterday announced that it would step in to staunch stock market losses for the ninth time in the nation’s history.
An NSF board meeting, originally scheduled for Monday next week, was moved to yesterday after stocks plummeted in the wake of US President Donald Trump’s announcement of 32 percent tariffs on Taiwan on Wednesday last week.
Board members voted to support the stock market with the NT$500 billion (US$15.15 billion) fund, with injections of funds to begin as soon as today.
Photo: Ritchie B. Tongo, EPA-EFE
The NSF in 2000 injected NT$120 billion to stabilize stocks, the most ever. The lowest amount it has injected was NT$760 million over 201 days in 2020.
At the legislature yesterday, lawmakers scheduled for Premier Cho Jung-tai (卓榮泰) to present a report on Friday on government measures to support businesses hit hard by the US tariffs.
The government plans to spend NT$70 billion on measures such as lowering loan interest rates, reducing administrative costs and expanding tax exemptions for the affected industries.
It would also be used to help enterprises diversify their markets, and invest in research and development, the Executive Yuan said.
Another NT$18 billion would be allocated to support the agricultural sector through loans, interest subsidies, equipment subsidies and other measures.
Speaking ahead of a meeting at the legislature, Minister of Foreign Affairs Lin Chia-lung (林佳龍) said that Taiwan would negotiate with the US at any time on the tariff issue.
Taiwan was singled out by Washington as among the US trading partners with the highest surpluses.
President William Lai (賴清德) on Sunday proposed a zero-tariffs regime with the US, and to invest more in the nation and remove trade barriers.
Lin yesterday said that Taiwan was ready to talk about a variety of issues with the US, including investment in and purchases from the US, as well as non-tariff barriers.
“As long as there is a confirmed time and method for negotiations, they can be discussed at any time,” he said.
White House economic adviser Kevin Hassett on Monday said that Taiwan had reached out to discuss the tariffs and Cho yesterday confirmed that Taiwan was one of those seeking talks and the government would choose an appropriate time to present Lai’s plans to the US.
“We definitely have a comprehensive plan, we have the right people, and we will be able to go and have positive negotiations,” he said.
The TAIEX, which logged its worst fall ever on Monday, fell another 4.02 percent yesterday and hit its lowest level in 14 months.
Although Monday’s drop was significant, the government was adequately prepared, Cho said.
The Executive Yuan, the Financial Supervisory Commission and the central bank have conducted extensive analysis of various scenarios, he said.
Cho also thanked the commission and the Taiwan Stock Exchange for announcing temporary response measures on Sunday to help maintain stock market stability.
Public response has indicated that the measures were helpful and deterred short selling, he said.
The American Chamber of Commerce in Taiwan in a statement yesterday expressed its concern about the tariffs, and called on Washington to exempt Taiwan from trade actions that could “jeopardize the stability and trust underpinning the US-Taiwan relationship.”
Additional reporting by Cho Yi-chun
One of two tropical depressions that formed off Taiwan yesterday morning could turn into a moderate typhoon by the weekend, the Central Weather Administration (CWA) said yesterday. Tropical Depression No. 21 formed at 8am about 1,850km off the southeast coast, CWA forecaster Lee Meng-hsuan (李孟軒) said. The weather system is expected to move northwest as it builds momentum, possibly intensifying this weekend into a typhoon, which would be called Mitag, Lee said. The radius of the storm is expected to reach almost 200km, she said. It is forecast to approach the southeast of Taiwan on Monday next week and pass through the Bashi Channel
NO CHANGE: The TRA makes clear that the US does not consider the status of Taiwan to have been determined by WWII-era documents, a former AIT deputy director said The American Institute in Taiwan’s (AIT) comments that World War-II era documents do not determine Taiwan’s political status accurately conveyed the US’ stance, the US Department of State said. An AIT spokesperson on Saturday said that a Chinese official mischaracterized World War II-era documents as stating that Taiwan was ceded to the China. The remarks from the US’ de facto embassy in Taiwan drew criticism from the Ma Ying-jeou Foundation, whose director said the comments put Taiwan in danger. The Chinese-language United Daily News yesterday reported that a US State Department spokesperson confirmed the AIT’s position. They added that the US would continue to
The number of Chinese spouses applying for dependent residency as well as long-term residency in Taiwan has decreased, the Mainland Affairs Council said yesterday, adding that the reduction of Chinese spouses staying or living in Taiwan is only one facet reflecting the general decrease in the number of people willing to get married in Taiwan. The number of Chinese spouses applying for dependent residency last year was 7,123, down by 2,931, or 29.15 percent, from the previous year. The same census showed that the number of Chinese spouses applying for long-term residency and receiving approval last year stood at 2,973, down 1,520,
EASING ANXIETY: The new guide includes a section encouraging people to discuss the threat of war with their children and teach them how to recognize disinformation The Ministry of National Defense’s All-Out Defense Mobilization Agency yesterday released its updated civil defense handbook, which defines the types of potential military aggression by an “enemy state” and self-protection tips in such scenarios. The agency has released three editions of the handbook since 2022, covering information from the preparation of go-bags to survival tips during natural disasters and war. Compared with the previous edition, released in 2023, the latest version has a clearer focus on wartime scenarios. It includes a section outlining six types of potential military threats Taiwan could face, including destruction of critical infrastructure and most undersea cables, resulting in
RSS