Taiwan Announces $2.7 Billion Aid Package to Counter U.S. Tariffs

Premier Cho Jung-tai Approves Support for Businesses and Workers Facing Trade Challenges

Taipei, April 21 – Premier Cho Jung-tai (卓榮泰) has greenlit a substantial financial support package, totaling NT$88 billion (approximately US$2.71 billion), designed to cushion the blow of increased U.S. tariffs on Taiwan's economy. The Cabinet revealed on Monday that the plan aims to provide crucial assistance to Taiwanese businesses and workers impacted by the new trade measures.

According to Cabinet Secretary-General Kung Ming-hsin (龔明鑫), the initiative will offer various forms of financial aid to Taiwanese companies, effectively acting as a "protective measure."

Key features of the package include facilitating access to low-interest trade financing, which is expected to benefit around 12,000 businesses. Agricultural loans will also be provided to an estimated 15,600 farmers, helping them navigate the challenges posed by the tariffs.

Companies directly affected by the U.S. tariffs will experience simplified loan application processes and potentially extended payment deadlines on existing loans, as stated by Kung.

To address potential labor market disruptions, the package incorporates subsidies for workers in designated industries whose employers may need to reduce working hours or implement furloughs, Kung explained.

Furthermore, companies that have experienced a revenue decline of 10 percent in January or February 2025 compared to the same period last year will have access to preferential export loans and SME (Small and Medium Enterprise) loans, according to Kung.

Premier Cho has requested that relevant government departments furnish detailed explanations of the 20 measures included in the package in the coming days, Kung said in a statement.

With Premier Cho's approval, the support package is expected to receive formal approval at the Cabinet's upcoming meeting on Thursday.

Following Cabinet approval, the plan will be submitted to the Legislature, where the Kuomintang, the largest opposition party, has already expressed interest in increasing the package's value from NT$88 billion to NT$200 billion.

These financial measures are a direct response to U.S. President Donald Trump's recent announcement of widespread global tariffs, including a 32 percent tariff on goods from Taiwan.

Taiwan has voiced its strong objections to the tariffs, describing them as "deeply unreasonable" and "highly regrettable," but has concurrently indicated that it will not retaliate.

The U.S. subsequently announced a 90-day pause on the heightened "reciprocal" tariffs for most countries. Taiwan intends to engage in discussions with the U.S. to work toward reducing the tariffs as much as possible.