Taiwan reacts to Trump’s they 'should pay us for defense' comments

TAIWAN – Reactions to former President Trump’s blunt statements regarding what he sees as an imbalance in bearing the cost of defending the Republic of China (Taiwan’s official name) were mixed, with some expressing varying degrees of agreement and others pointing out that Taiwan is still waiting for some $19 billion worth of already-purchased American weapons. 

Trump’s comments were made in an interview with Bloomberg Businessweek last week. The Republican Party nominee for president in November’s election said, "I know the people very well, respect them greatly. They [Taiwan] did take about 100% of our chip business. I think Taiwan should pay us for defense."

After the remarks became public, the share price of Taiwan’s chipmaker TSMC, which had already been falling, dropped further. TSMC Chairman C. C. Wei told investors at a conference the next day that the company will stay on course with expansion plans in the U.S., Japan, and Germany, regardless of geopolitical tensions.

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Taiwanese Premier Cho Jung-tai thanked the U.S. for its support and said ties remain solid. Cho added that the Taiwan government would continue policies that show it is shouldering its responsibilities as a member of the international community.

More controversially, Trump told Bloomberg, "You know, we’re no different than an insurance company. Taiwan doesn’t give us anything." This statement has been met with skepticism by some in Taiwan, who argue that Taiwan has been a reliable partner in the region.

"It is inaccurate to say Taiwan doesn’t ‘give anything,’" Huang Kwei-bo, professor of diplomacy at Taipei’s National Cheng Chi University, told Fox News Digital. "For decades, Taiwan has paid seller’s market prices for major weaponry systems from the United States, its sole provider."

Huang conceded that, with bipartisan congressional support, the Biden administration in 2023 resumed some very limited amounts of military financial aid to Taiwan, the first such grants since the 1960s, moves Huang credited to anti-Beijing sentiment in the U.S. 

Joann Ko (Ko Chih-en), an influential lawmaker with the Kuomintang (KMT) opposition party, expressed surprise at hearing the former president describe the countries' defense relationship in terms that amount to accusing Taiwan of being a freeloader. 

"We’ve increased spending and readiness and I think we pay enough," she told Fox News Digital in exclusive comments squeezed in between parliamentary sessions on Thursday. "Of course, we are willing to discuss changes, and we highly value good relations with the U.S. The United States is welcome to offer advice, and we will take any proposals seriously. But I can’t agree with those comments."   

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There are, however, many voices in Taiwan who either agree wholeheartedly or to some degree with sentiments expressed by Trump. 

Ross Feingold, Taipei-based lawyer, political commentator and former Asia chairman of Republicans Abroad, told Fox News Digital that as either a percentage of the Taiwanese government’s annual spending or as a percentage of GDP, Taiwan spends far less on defense than it should. "Given the ever-increasing risk that Taiwan faces, the amount that Taiwan spends is clearly not enough and President Trump is right to point this out," he said. 

Huang notes that Taiwan has recently spent more on defense. The last administration increased the annual defense budget from roughly 2% of the total GDP to 2.5% when special "one-off" budgets are included. However, these figures still fall short of the 3% GDP threshold Trump has demanded from NATO members. Taiwan is not a member of NATO.

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Huang said he wished the government had declined U.S. military financing or loans, as they may have given the wrong impression to Trump.

The 1979 Taiwan Relations Act (TRA) is a U.S. law requiring the United States to provide Taiwan with defensive arms and mandates that the U.S. maintain the capacity to resist any force or coercion that would threaten Taiwan’s security or socio-economic stability. Trump critics highlight that the TRA contains no provision obligating Taiwan to pay for its defense. 

Such critics also point to the $19 billion backlog – meaning Taiwan has already purchased an array of items from fighter jets to Abrams tanks, that have yet to be delivered. According to the Cato Institute, Taiwan on average waits longer than other nations for the delivery of weapons, especially HIMARS, newly built F-16s, and Abrams tanks. 

Feingold, however, agrees with those who think the U.S. will not abandon Taiwan, even if spending doesn’t reach numbers suggested by Robert O’Brien, a top Trump national security adviser, who recently said his personal view was that Taiwan should spend at least 5% of its GDP on defense, a number KMT lawmaker Ko said would likely be impossible to achieve. 

Should Trump return to the Oval Office in January 2025, there is a consensus here that he will likely be surrounded by a very pro-Taiwan team, people who are aware of the dangers posed to world peace by the communist government in Beijing. 

Responding to Trump’s comments on Friday, Taiwan’s Foreign Minister Lin Chia-lung told foreign reporters in Taipei that the island nation must indeed rely on itself for defense, and will both modernize its military and increase spending.