In a bold move to shield its economy from potential shocks, Taiwan’s Premier Cho Jung-tai announced on Thursday an expanded stimulus package worth T$410 billion (approximately $12.6 billion). The proposal aims to counter the economic ripple effects of impending 32% U.S. tariffs, which were recently paused for 90 days by former U.S. President Donald Trump.
Initially slated at T$88 billion ($2.7 billion), the support plan now includes financial assistance for businesses, job protection measures, and subsidies for energy costs. Cho revealed the updated proposal during a press briefing in Taipei, underlining the government’s commitment to stabilizing the local economy.
However, the budget still needs approval from Taiwan’s opposition-controlled parliament, which has been tightening purse strings this year, citing efforts to curb wasteful spending.
Meanwhile, Taiwan is actively negotiating with the U.S. to soften trade tensions. In a strategic pivot, President Lai Ching-te confirmed that increased purchases of American natural gas and oil are central to Taiwan’s proposal to help rebalance its trade surplus.
With energy security and global diplomacy at the forefront, Taiwan is showing resilience—and strategic pragmatism—in the face of rising trade headwinds.
