Taipei: A bill proposed by Taiwan’s main opposition party, the Kuomintang (KMT), aims to mitigate the impact of U.S. tariffs on the Taiwanese economy through cash handouts to citizens.
According to Focus Taiwan, the KMT’s legislative caucus revealed the bill during a news conference in Taipei. The bill proposes the allocation of up to NT$390 billion (US$12.94 billion) by the central government to address the repercussions of U.S. tariffs on Taiwan’s industrial and agricultural sectors and the broader economy. A prominent feature of the proposal is the NT$10,000 cash handout to each Taiwanese national, expected to cost NT$230 billion and be distributed before the end of October. However, there is uncertainty regarding whether non-citizen permanent residents or other residents would receive the handout.
KMT Legislator Wang Hung-wei emphasized that the cash handouts could assist Taiwanese citizens in managing the economic challenges posed by U.S. President Donald Trump’s announced tariffs on Taiwanese goods. Wang also suggested that the handouts might stimulate the local economy by boosting consumption.
Trump’s announcement of a 32 percent “reciprocal tariff” on most Taiwanese products in early April was initially paused for 90 days and replaced with a 10 percent import tax applicable to most countries. Unlike the Cabinet’s proposal from April 24, the KMT’s bill excludes NT$100 billion in funding for Taiwan Power Co. (Taipower) to address its financial losses.
KMT Legislator Ko Chih-en urged the government to revise its energy policy, citing Taipower’s unresolved financial issues despite years of government aid. By the end of 2024, Taipower’s deficits had reached NT$420 billion, despite repeated financial support from the Democratic Progressive Party (DPP) government.
The Cabinet has argued that funding Taipower is part of the government’s strategy to respond to U.S. tariff impacts, suggesting it would stabilize consumer prices and alleviate burdens on Taiwanese industries. The Cabinet’s NT$410 billion authorization bill also includes NT$150 billion for strengthening Taiwan’s security and a NT$93 billion support package initially proposed after the tariffs were announced.
The Taiwan People’s Party (TPP) legislative caucus also presented its version of the bill, proposing NT$6,000 cash handouts for Taiwanese citizens, excluding aid for Taipower.
In response to the opposition parties’ cash handout proposals, Premier Cho Jung-tai expressed skepticism, stating at the Legislature on Tuesday that such measures were “not the most effective or the best” approach for the country, though he did not provide further details.