TAIPEI – The Taiwanese government has unveiled a special budget proposal worth USD 10 billion (approximately IDR 160 trillion) aimed at mitigating the economic fallout from the United States’ steep import tariffs.

The move is part of Taiwan’s strategy to respond to the US’s reciprocal tariff policy, which imposes a 32% import tax on several trade partners, including Taiwan.

At a press conference in Taipei on Thursday (24/4), Prime Minister Cho Jung-tai announced that an initial relief package of TWD 88 billion (around USD 2.71 billion) would be significantly expanded to TWD 410 billion (around USD 12.61 billion).

The stimulus funds will support business financing, stabilise the labour market, and provide electricity subsidies to maintain domestic economic competitiveness.

However, the budget proposal still requires parliamentary approval, where the opposition currently holds a majority. The opposition has previously cut state spending on the grounds of efficiency and preventing waste.

As part of its diplomatic response, Taiwan is also actively negotiating with the US government. The Taiwanese government has pledged to increase imports of American energy products, particularly natural gas and crude oil, in an effort to reduce the substantial trade surplus between the two nations.

President Lai Ching-te stated that boosting energy imports is a central priority in Taiwan’s ongoing tariff discussions with the US. (EF/KR/ZH)