Taipei: Taiwan’s Legislature has postponed deliberation of a special bill that would allow the government to allocate up to NT$410 billion (US$14.2 billion) to invest in the country’s security and mitigate the potential impact of U.S. “reciprocal” tariffs. At a news conference on Friday, Wang Hung-wei, a lawmaker from the main opposition Kuomintang (KMT), announced that her party and the Taiwan People’s Party (TPP) had agreed to put the bill on hold pending the outcome of tariff negotiations between Taiwan and the U.S.
According to Focus Taiwan, the KMT and the TPP, which together hold a majority in the Legislature, secured the ruling Democratic Progressive Party’s agreement at a meeting on the legislative floor, preventing the bill from being put to a vote until later next week. The reciprocal tariffs pledged by U.S. President Donald Trump against over 170 nations have been paused for 90 days until July 9, with Trump stating that Washington would begin notifying countries of the duty rates they face starting Friday.
Wang, currently the secretary-general of the KMT legislative caucus, expressed concern that Taiwan might receive treatment similar to Vietnam, which could lead to severe economic consequences. Trump announced that the U.S. had reached an agreement with Vietnam, under which goods sent from Vietnam to the U.S. would face a 20 percent levy, down from the originally proposed 46 percent, while American products would be allowed to enter Vietnam tariff-free.
The Cabinet-proposed bill, originally designed to help Taiwanese exporters absorb potential tariff shocks, has expanded from NT$88 billion to NT$410 billion. It now includes NT$150 billion for military and coast guard system upgrades and NT$100 billion in aid for the financially struggling Taiwan Power Co. (Taipower). The bill has drawn criticism from the opposition, which argued that much of the proposed spending is unrelated to trade relief.
Both the KMT and the TPP have submitted separate versions of the bill alongside the Cabinet’s proposal, suggesting cash handouts of NT$10,000 and NT$6,000, respectively, to each Taiwanese national. Once the finalized bill clears the Legislature, the Cabinet will need to submit an appropriation bill to authorize the actual disbursement of funds.