In a recent interview, former President Donald Trump asserted that Taiwan “should pay” the United States for its defense services amid rising tensions with China, which views Taiwan as part of its territory. His comments, published in Bloomberg Businessweek, raise questions about the future of US-Taiwan relations if he were to be re-elected.
When asked whether he would defend Taiwan, Trump acknowledged his respect for the Taiwanese people but emphasized the economic aspect of the relationship. “I know the people very well, respect them greatly. They did take about 100 percent of our chip business. I think Taiwan should pay us for defense,” he stated, as reported by Bloomberg.
He compared the US role to that of an insurance company, noting that Taiwan does not provide anything in return. Despite the lack of formal diplomatic recognition, the US maintains a strong partnership with Taiwan and is a significant supplier of military aid, having recently approved a multi-billion-dollar package aimed at bolstering defenses against China.
Taiwan plays a crucial role in the semiconductor industry, producing most of the advanced microchips essential for the global economy. The Taiwan Semiconductor Manufacturing Company (TSMC) has benefited significantly from the US’s Chips and Science Act, which aims to encourage investment in chip manufacturing within the US. TSMC is currently constructing two plants in the US and has plans for a third, with total investments reaching $65 billion.
Trump expressed concern over the US’s financial support for TSMC’s expansion in the US, stating, “I don’t think we’re any different from an insurance policy. Why? Why are we doing this? They took almost 100% of our chip industry, I give them credit.”