Donald Trump has suggested that Taiwan should pay the United States for its defence, casting doubt on Washington's commitment to the island democracy if he returns to the White House. In an interview with Bloomberg Businessweek, the former president likened the US to an insurance company and claimed Taiwan “doesn’t give us anything”.
Trump’s remarks come as Taiwan’s government reaffirms its commitment to self-defence. Premier Cho Jung-tai said on Wednesday that Taiwan is grateful for US support and is increasing its own capabilities. “Taiwan and the US share a common responsibility for the Indo-Pacific region of the Taiwan Strait, and we are willing to do more to defend ourselves,” he told a press briefing.
The US is Taiwan’s most important security partner, though it does not formally recognise the island. Washington sells billions of dollars in weapons to Taiwan under legislative obligations, a practice that increased during Trump’s presidency. However, Trump questioned why the US should act as Taiwan’s “insurance” when, he claimed without evidence, Taiwan had taken “almost 100%” of America’s semiconductor industry.
Taiwan produces over 90% of the world’s most advanced chips, primarily through Taiwan Semiconductor Manufacturing Co (TSMC), which is building three plants in Arizona at a cost of $65bn. TSMC’s shares fell 2.4% on Wednesday following Trump’s comments. Premier Cho expressed hope that chip manufacturers would keep their research and development in Taiwan, calling it “the best option”.
Trump’s interview also revealed a potentially hawkish but unpredictable approach to China. He pledged tariffs of 60-100% on Chinese goods but said he would back down on banning TikTok. He described Chinese leader Xi Jinping as “a very good friend of mine” until the pandemic. His running mate, JD Vance, told Fox News that the US should focus on China as its greatest security threat, asking whether Beijing would be more dissuaded by US actions in Europe or by having the weapons to prevent an invasion of Taiwan.
