TAIPEI (Taiwan News) — Businesses applying for government-backed loans to offset the effect of US tariffs will need to show they have not cut staff or wages, Economics Minister Kuo Jyh-huei (郭智輝) said on Thursday.
Speaking at the legislature, Kuo responded to lawmaker's questions about the Cabinet’s NT$88 billion (US$2.66 billion) stimulus package for affected businesses, per ET Today. The package was approved on Thursday and includes loans for exporters and small and medium-sized enterprises.
The economics ministry will oversee NT$41 billion of the package, and Kuo said 60% of this will be used for loans to SMEs. He said the ministry wanted to avoid concentrating resources on areas with existing advantages, like the semiconductor industry.
The loans for SMEs would be provided on the basis that there are “no layoffs, and no salary cuts,” Kuo said. Deputy Finance Minister Li Ching-hua (李慶華) backed Kuo’s comment, and said Taiwan’s eight major banks would be asked to adhere to this “important principle.”
Premier Cho Jung-tai (卓榮泰) said on Thursday that businesses could apply for assistance starting next week. The industrial sector will receive NT$70 billion of the aid, and the agriculture sector will receive NT$18 billion, per CNA.
In addition to loans, the package will provide expedited customs clearances, R&D subsidies, tax incentives, and employment services. The fund will also enhance industry competitiveness and diversify export locations, the Cabinet said.
US President Donald Trump paused higher tariffs on many countries for 90 days on Wednesday. On Thursday, Foreign Minister Lin Chia-lung (林佳龍) said Taiwan is one of the countries that will receive the lower rate, meaning its exports to the US will be taxed at 10% instead of 32%.
