US$12.6 Billion Special Budget Proposal Passes First Reading in Legislature

TaiwanPlus News

The Cabinet's proposed US$12.6 billion tariff relief plan has gotten an initial nod from the country's legislature. The ruling Democratic Progressive Party is hoping to speed up the spending bill's approval, but there may still be challenges ahead.

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00:00Taiwanese goods bound for the U.S. may face tariffs up to 32 percent in the coming months.

00:07That's as U.S. President Donald Trump looks to address trade deficits with other countries.

00:12For now, the levies are on a temporary 90-day hold.

00:16Taiwan's cabinet has put forth a 12.6 billion U.S. dollar budget to soften the anticipated

00:22blow.

00:23But the country's legislature must first agree to it.

00:26That's a big hurdle for the ruling Democratic Progressive Party, which has a minority in

00:30the legislature.

00:32But even amid souring relations across parties, Premier Zhou Rongtai has tried smoothing

00:37things over with the opposition Kuomintang and the Taiwan People's Party.

00:43Earlier this week, he visited each party's legislative caucus, hoping to garner support

00:47for the budget.

00:49Opposition parties are keen to help Taiwan weather the tariff storm.

00:53But concerns loom that the special budget contains unnecessary spending.

01:11Among the items is a three billion U.S. dollar subsidy for Taiwan's power provider Tai Power,

01:24which has been operating amid amounting multi-billion dollar losses.

01:28The opposition says the proposed subsidy reflects the ruling administration's poor energy policy.

01:34The Premier says the special budget isn't just about U.S. tariffs.

01:41The Premier says the special budget isn't just about U.S. tariffs.

01:48But the opposition may now be softening.

01:55On Friday, the special budget proposal passed its first reading in the legislature.

02:00It will now be sent for committee review.

02:02DPP lawmakers have called on their opposition counterparts to expedite the process.

02:08The opposition says it understands the urgency of the situation and will do what's best for Taiwan.

02:15The opposition says it understands the urgency of the situation and will do what's best for Taiwan.

02:18But that it will also continue to keep government spending in check.

02:43Politically, ruling and opposition parties may not see eye to eye.

02:59But in the face of an imminent tariff threat from the U.S., they're prioritizing keeping Taiwan's head above water.

03:06James Lin and Leslie Liao for Taiwan Plus.

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