TAIPEI (TVBS News) — The mayor of Taiwan's industrial powerhouse in the south called for targeted economic relief Thursday (April 10) as regional leaders gathered at the highest levels of government to address mounting trade pressures. Kaohsiung Mayor Chen Chi-mai (陳其邁) pressed the Executive Yuan (行政院), Taiwan's cabinet, to implement specialized support measures for southern manufacturing hubs disproportionately affected by escalating U.S.-China trade tensions during an extraordinary meeting that brought together leaders from Taiwan's six largest municipalities.
Mayor Chen painted a stark picture of industrial disruption during the high-level briefing, emphasizing that many Taiwanese manufacturers now face existential decisions about relocating their production facilities amid shifting trade dynamics. He drew particular attention to Kaohsiung's vital steel sector, noting that while recent negotiations had secured exemption from the broader 32% tariff regime, the industry continues to struggle under the separate 25% duty imposed through the U.S. Section 232 national security provisions, creating a complex dual-pressure system for metal exporters.
The southern port city's leader described a perfect storm confronting Taiwan's heavy industries, with Chinese manufacturers flooding European and Southeast Asian markets with artificially low-priced steel products while U.S. tariffs simultaneously restrict access to American consumers. This pincer movement, Chen argued, requires immediate government intervention through enhanced financial support mechanisms and reduced capital costs for struggling sectors. His proposal specifically targeted relief for the metals and petrochemical industries—both critical components of Kaohsiung's manufacturing ecosystem and significant employers in Taiwan's southern region.
Chen grounded his appeal in stark export dependency statistics, noting that American markets absorb 52% of Taiwan's information and communication technology exports and 13% of its electronic components — figures illustrating the island's acute vulnerability to U.S. trade policy shifts. The mayor advocated for a comprehensive approach to market diversification, proposing specific monetary interventions including the relaxation of bank reserve requirements and the establishment of dedicated financial instruments. These measures, he suggested, would provide financial institutions with greater flexibility to extend favorable lending terms to affected businesses navigating the uncertain trade landscape.
The Kaohsiung mayor's financial relief blueprint further called for expanding government loan guarantee thresholds to enhance underwriting capacity for struggling enterprises and implementing specialized policy-based lending programs targeting businesses facing immediate liquidity challenges. Chen's economic prescription extended beyond direct industry support to broader stimulus measures, advocating for accelerated public infrastructure development to strengthen domestic market activity while simultaneously implementing consumer-focused policies designed to boost private spending during the anticipated trade turbulence.
