TAIPEI (Taiwan News) — President Lai Ching-te (賴清德) said Thursday that Taiwan must strengthen defense while promoting economic growth, supporting citizens through targeted industry aid.

Since taking office, Lai said his administration has reinforced national defense and deepened diplomatic ties, per CNA. He made the remarks while visiting Acelon Chemicals and Fiber Corporation’s plant in Fangyuan Township, Changhua County, per UDN.

He highlighted government support for industries hit by tariffs, noting that US negotiations set the rate at 15% with no cumulative charges. The Cabinet expanded support programs from NT$88 billion (US$2.78 billion) to NT$93 billion, with NT$46 billion earmarked for small and medium enterprises.

Taiwan has more than 1.6 million SMEs employing 9 million people, or 80% of the workforce, Lai said, adding that steady growth is vital for economic resilience and social stability.

The president said the textile industry has annual output of NT$343.1 billion, exports of US$6.74 billion (about NT$212 billion), and more than 130,000 jobs. With tariffs resolved, Taiwan can compete fairly with Japan and South Korea while tackling low-cost yarn imports and carbon emission challenges, he said.

Changhua County Magistrate Wang Hui-mei (王惠美) said post-pandemic inventory pressures, tariffs, and exchange rates forced some SMEs to scale back operations. With tariff issues easing, companies have more room to grow, and she called for support to revitalize traditional industries.