Taiwan Premier to Rally Support for Tariff Relief Plan in Legislature

Cabinet's NT$88 Billion Initiative to Mitigate Impact of US Tariffs Faces Legislative Review

Taipei, Taiwan - Premier Cho Jung-tai (卓榮泰) is set to address the Legislature on April 11th, outlining the Cabinet's strategy to assist Taiwanese businesses impacted by impending U.S. tariffs. This follows inter-party discussions held within the Legislature on Tuesday.

Lawmakers from the ruling Democratic Progressive Party (DPP), the opposition Kuomintang (KMT), and the Taiwan People's Party (TPP) collectively agreed to invite Cho and other Cabinet members to report on the proposed plan and answer questions during the upcoming legislative session.

This agreement arrives a day after Premier Cho unveiled a comprehensive NT$88 billion (US$2.66 billion) proposal designed to cushion the blow of a projected 32% import tax slated to affect a significant portion of Taiwanese goods, beginning Wednesday. The aim is to secure the backing of the legislative body.

Last week, Cho detailed the support measures, which will be financed through a dedicated budget and require legislative approval. The government intends to allocate NT$70 billion towards initiatives such as lowering loan interest rates, reducing administrative expenses, and expanding tax exemptions for Taiwanese industries negatively affected by the impending tariffs.

The NT$70 billion will also be channeled to assist businesses in diversifying their markets and investing in research and development, according to the Cabinet's plans.

The remaining NT$18 billion will be directed towards supporting the agricultural sector through various means, including loans, interest subsidies, and equipment subsidies.

In a pre-recorded address on Monday, President Lai Ching-te (賴清德) stated the government's intention to negotiate with Washington for "bilateral zero-tariff treatment," striving to secure more favorable trade terms for Taiwan.

Furthermore, President Lai promised to increase purchases of American products to help balance trade between the two nations and address any non-tariff trade barriers identified by the U.S.

Separately, ruling and opposition party lawmakers reached an agreement to revisit recently passed measures that will effectively increase retirement pensions for Taiwan's law enforcement and emergency services personnel.

Premier Cho's Cabinet requested the revote last week in an attempt to overturn amendments to the Police Personnel Management Act, previously approved with support from KMT and TPP lawmakers.

The Cabinet has voiced concerns that the amendments would "impact the financial stability" of the public service pension system, thereby undermining its fairness and potentially affecting the rights of both current and retired public servants.

The amendments include retroactive measures increasing the income replacement rate for retired police officers, firefighters, immigration officers, and personnel in the Coast Guard and the National Air Service Corps, potentially reaching as high as 80 percent.

Currently, pension plans for law enforcement and emergency services personnel are aligned with those of other public servants, with the income replacement rate capped and scheduled to decrease gradually to 60 percent by 2029.