Directs Tariff Aid: Cho's Direction on Tariff Assistance
The classified US tariff negotiations between Taiwan and the US are ongoing but unresolved as of late July and early August 2025, with a looming deadline on August 1, 2025, for tariff rate increases. Taiwan faces a potential reciprocal tariff increase up to 20% if no deal is reached by that deadline, but the tariff imposition was delayed slightly until August 7, 2025. Negotiations remain active but incomplete, with no public confirmation of a final agreement.
In a separate development, the absence of Kuomintang (KMT) and Taiwan People’s Party (TPP) legislators from a recent review meeting has raised eyebrows. The meeting, held to review classified documents on Taiwan-US tariff negotiations, was open to all legislators. However, KMT and TPP legislators stated that they would not attend, as they had to provide government oversight. No explicit reason was provided for their absence.
The political context reveals tension between Taiwan’s ruling Democratic Progressive Party (DPP) and the opposition KMT and TPP. The KMT recently survived a recall attempt that might have been politically significant, and the legislative deadlock reportedly favors Beijing’s interest by stalling President Lai's agenda. This political discord could plausibly explain why KMT and TPP legislators chose not to attend certain government review meetings, possibly including those related to sensitive US-Taiwan trade talks.
On the domestic front, Premier Cho Jung-tai directed all ministries and agencies to support industries affected by US tariffs pending the implementation of a special budget. The Legislative Yuan passed the Special Act for Strengthening Economic, Social and National Security Resilience in Response to International Circumstances on July 11. The act includes a NT$545 billion (US$18.28 billion) budget, with NT$10,000 cash payment to each citizen, NT$150 billion for whole-of-society defense resilience, NT$93 billion for industry and employment support, and NT$67 billion for social support.
However, the article does not contain new facts about the special act, the cash handout provision, or the industrial support plan. Some adjustments need to be made to the industrial support plan, and the Executive Yuan would ask the Constitutional Court to review the cash handout provision. The Democratic Progressive Party caucus chief executive, Rosalia Wu, stated that the government does not have an unlimited budget.
The Chinese Nationalist Party (KMT) criticized the closed-door meeting of the Legislative Yuan's Foreign Affairs and National Defense Committee to review classified documents on Taiwan-US tariff negotiations, describing it as an attempt to keep the public in the dark. Deputy Minister of Foreign Affairs Chen Ming-chi stated that the meeting was nearly unprecedented, but the ministry and the Executive Yuan's Office of Trade Negotiations were willing to acquiesce and respect legislative oversight. The rest of the special act would remain unchanged.
Additional reporting was done by Chen Cheng-yu and Fang Wei-li.
[1] Taiwan News, "Taiwan-US trade tariffs: Deadline extended for negotiations," August 2, 2025. [Online]. Available: https://www.taiwannews.com.tw/en/news/4108847
[2] Focus Taiwan, "KMT, TPP legislators absent from tariff negotiations review meeting," August 3, 2025. [Online]. Available: https://focus-taiwan.tw/news/aipl/aipl202508030015.aspx
[3] Reuters, "Taiwan and US trade tariffs: Negotiations continue but no deal yet," August 4, 2025. [Online]. Available: https://www.reuters.com/world/asia-pacific/taiwan-us-trade-tariffs-negotiations-continue-but-no-deal-yet-2025-08-04/
- The ongoing Taiwan-US tariff negotiations are not only a matter of industry and finance, but also a significant point of political contention, given the absence of Kuomintang (KMT) and Taiwan People’s Party (TPP) legislators from a review meeting and the tensions between the ruling Democratic Progressive Party (DPP) and the opposition KMT and TPP.
- In the general-news context, the special budget, including the NT$93 billion for industry and employment support, is a response to the ongoing US tariff negotiations and their potential impact on various industries in Taiwan, with adjustments needed and a potential review by the Constitutional Court for the cash handout provision.
