Taiwan plans to allocate $2.7 billion to help companies amid US tariffs

Steel industry is among the most affected industries

At the end of last week, the Taiwanese government announced a proposal to provide financial assistance to companies and industries worth NT$88 billion ($2.67 billion) to overcome the effects of US tariffs. This was reported by Focus Taiwan.

Officials did not specify what impact the US duties will have on Taiwan’s economy and GDP. However, Taiwanese Prime Minister Cho Jun-tai named the industries that will be most affected, including electronics and information technology, steel industry, mechanical engineering, auto parts, building materials, and household appliances.

The government plans to spend NT$70 billion on measures such as lowering interest rates on loans, cutting administrative costs, and extending tax breaks for industries affected by the tariffs. In addition, this funding will be used to help businesses diversify markets and invest in research and development. The remaining 18 billion will be used to support the agricultural sector (loans, interest subsidies, etc.).

The government’s proposal will be financed through a special budget, which requires parliamentary approval.

Government officials reported that they continue to work closely with industry and business – on April 8, the relevant agencies will open hotlines to help them access state support.

On April 2, US President Donald Trump announced the introduction of a common basic tariff on imports into the country, and higher reciprocal duties for dozens of trading partners. This decision includes Taiwan, with a rate of 32%. Only certain products, such as copper, pharmaceuticals, and semiconductors, are exempt from Trump’s latest tariffs.

As GMK Center reported earlier, JPMorgan has raised the probability of a recession in the US and the world in 2025 to 60% from 40% previously. Brokerage companies are trying to revise their forecast models as the tariff crisis threatens to undermine business confidence and slow global growth.