Did Trump's Tariff Threat Work? Taiwan Plans to Purchase Over $4 Trillion Worth of US Weapons

 

Taiwan responds to China's military drills with plans to bolster defense capabilities.

Taiwan is reportedly preparing to purchase over NT$100 billion (approximately $4.4 trillion) worth of US-made weapons, a move seen as a response to mounting geopolitical tensions in the Asia-Pacific region and increasing pressure from the US under President Donald Trump’s administration.

According to the Chinese Review News Agency (CRNTT) on February 3, Taiwanese military sources revealed that the island nation plans to procure a variety of defense equipment. The Air Force is expected to acquire six E-2D Advanced Hawkeye airborne early warning and control (AEW&C) aircraft, the Navy aims to purchase ten MH-60R anti-submarine helicopters, and the Army is reviewing plans to secure M109A7 self-propelled howitzers.

A Shift in Taiwan’s Defense Procurement Strategy

Reports indicate that Taiwan’s shift toward prioritizing American arms purchases began after Trump's inauguration. The president's administration emphasized strengthening defense ties and applying tariffs as leverage against trading partners, including Taiwan.

In a related development, the Financial Times previously reported that Taiwan had considered a massive $15 billion arms package, which included retired warships, four E-2D AEW&C aircraft, 400 Patriot missiles, and 60 F-35 fighter jets. However, Taiwan's Defense Minister Chiu Kuo-cheng dismissed the report, asserting that the government never submitted such a procurement list.

US-Taiwan Defense Relations Under Trump and Biden

The United States has long played a crucial role in Taiwan’s defense, not only supplying weapons but also assisting in military training. During Trump’s first term, the US approved 11 arms packages for Taiwan, valued at $21 billion. These included F-16 fighter jets and M1A2 Abrams tanks. Conversely, the Biden administration sanctioned a relatively modest $7 billion worth of arms sales.

Despite these developments, Trump signaled a departure from traditional US commitments to Taiwan’s security. Unlike President Biden, who affirmed the US's intention to defend Taiwan in case of conflict, Trump indicated that he might refrain from intervening militarily. Instead, he focused on imposing tariffs, including a 25% tariff on Canada and Mexico and a 10% tariff on China. There were also concerns that Taiwan could be targeted by similar tariff measures.

China’s Military Drills and Taiwan’s Response

The heightened tensions come in the wake of China's large-scale military drills encircling Taiwan. The drills were a direct response to a meeting between Taiwan's President Tsai Ing-wen and US House Speaker Kevin McCarthy. In retaliation, Taiwan's military conducted anti-aircraft defense exercises in Taipei to bolster its readiness against potential threats.

As Taiwan navigates complex security dynamics, its recent move to bolster defense capabilities underscores the island's strategic recalibration in the face of growing regional instability and evolving US foreign policy priorities.

The developments suggest that Taiwan’s willingness to invest heavily in US defense equipment is both a strategic necessity and a calculated response to geopolitical pressures, including tariff threats and increasing Chinese aggression.