TAIPEI: Taiwan’s government on Friday announced at least T$288 billion ($8.74 billion) in financial help for companies and industries to deal with the impact of U.S. tariffs, including export credits.
U.S. President Donald Trump on Wednesday announced across-the-board import tariffs, with much higher duties for dozens of trading partners including Taiwan, which runs a large trade surplus with the United States and is facing a 32% duty on its products.
The U.S. tariffs, however, do not apply to semiconductors, a major Taiwanese export.
Speaking at a news conference in Taipei, Premier Cho Jung-tai reiterated that the government regarded the tariffs as unreasonable, saying it would provide T$88 billion to help companies affected, saying the electronics and steel sectors would be among those worst impacted.
“The government’s responsibility is to continue to manage and control the risk and understand the needs of industry,“ he said.
Cho added he had asked Taiwan’s Office of Trade Negotiations to talk to the United States to try and lessen the impact of the tariffs.
Finance Minister Chuang Tsui-yun, speaking next to Cho, said the government would also provide T$200 billion in trade financing for exporters.
The announcements were made before financial markets re-open in Taiwan on Monday, having been closed on Thursday and Friday for a holiday.
Taiwan, for whom the United States is its most important international backer in the face of mounting Chinese pressure given Beijing’s sovereignty claims over the island, has not announced any retaliatory tariffs.
Taiwanese government officials have repeatedly said trade with the U.S. has been skewed by strong demand for Taiwanese technology products, such as advanced semiconductors – a sector dominated by the island, home to major chipmaker TSMC.
TSMC last month announced a new $100 billion investment in the United States.
($1 = 32.9730 Taiwan dollars)
