Taipei: Taiwan's main opposition party, the Kuomintang (KMT), has called on the ruling Democratic Progressive Party (DPP) to significantly increase the budget for the government's bailout plans. The demand comes in response to the potential economic impact of tariffs imposed by the United States, urging an increase from the current NT$88 billion (US$2.68 billion) to NT$200 billion.
According to Focus Taiwan, KMT Chairman Eric Chu convened a meeting with mayors and county commissioners from the 16 administrative regions under the party's control. The meeting was prompted by the announcement of a 32 percent tariff by U.S. President Donald Trump on April 2, which has been postponed for three months. The KMT officials proposed a series of measures that Chu presented at a press conference following the meeting.
Chu stressed the need for an augmented bailout budget to stabilize financial markets, offer low-interest loans, and provide tax benefits for industries. He also emphasized that the NT$500 billion National Financial Stabilization Fund should be increased, as the stock market has grown substantially since the fund's inception.
In addition to monetary measures, Chu proposed a visa-waiver program to allow international visitors a month-long stay in Taiwan without a visa. He also called for the resumption of applications from Chinese tour groups, which have been stalled since the onset of the COVID-19 pandemic.
Chu further advocated for NT$10,000 cash handouts to stimulate internal demand. He urged the government to engage in trade negotiations with the U.S. and other countries, focusing on sectors like fisheries and agriculture, and suggested dispatching procurement delegations to the U.S.
The KMT leader highlighted the importance of diversifying Taiwan's export markets and joining international economic organizations. He also recommended strict scrutiny of overseas investment plans to retain key technologies and industries within Taiwan.
Chu called for President Lai Ching-te to organize a national affairs conference that includes experts, industry representatives, and local government heads to devise strategies to tackle these economic challenges. The KMT's demands also address other economic concerns, such as a possible currency exchange conflict with the U.S., increased defense spending pressures from Washington, and the risks associated with Taiwan's significant holdings in U.S. treasury bonds.