Trump’s Re-election Sparks Uncertainty and Pressure on Taiwan to Boost Military Spending

Following Donald Trump‘s victory in the U.S. presidential election, Taiwan is facing significant pressure to increase its military spending and take greater responsibility for its self-defense. Trump, who is set to assume office again on January 20, 2025, has suggested that Taiwan should pay the U.S. for protection, likening the relationship to an insurance policy.

Taiwanese scholars and experts predict that the incoming Trump administration will maintain strong support for Taiwan but will also demand more financial and practical commitments from the island nation. Trump has proposed that Taiwan’s defense spending should increase to 10 percent of its gross domestic product (GDP), significantly higher than the current 2.5 percent.

The U.S. is expected to expand arms sales to Taiwan, including advanced weapons such as air defense systems and drones. However, this increased military support will likely come with the condition that Taiwan allocates a greater portion of its budget to defense. During his previous term, Trump initiated more flexible case-by-case reviews for arms sales to Taiwan and deepened U.S.-Taiwan military exchanges and joint training.

Trump’s remarks have also highlighted tensions over the semiconductor industry. He has accused Taiwan of “stealing” the chip industry from the U.S. and criticized the CHIPS Act, a bipartisan bill aimed at boosting domestic semiconductor manufacturing. Taiwan’s dominance in the chip industry, particularly through companies like TSMC, is seen as a potential source of tension between Taipei and Washington.

China, which claims Taiwan as its own, is bracing for renewed tensions with the U.S. over trade, technology, and Taiwan. Trump has threatened to impose significant tariffs on Chinese exports, including a potential 60 percent tariff on all Chinese imports to the U.S. and even higher tariffs if China invades Taiwan.

The unpredictability of Trump’s policies has created anxiety in Taiwan, which relies heavily on U.S. support as a major deterrent against Chinese aggression. Taiwanese politicians must now demonstrate their commitment to defense spending and self-defense capabilities to secure continued U.S. support.