Republican presidential candidate Donald Trump has suggested that Taiwan should reimburse the U.S. for defence, citing a lack of tangible returns in an interview.
“I know the people very well, respect them greatly. They did take about 100% of our chip business. I think Taiwan should pay us for defence,” Trump said in an interview on June 25 that was published on Tuesday.
Trump emphasised Taiwan’s significant role in the chip business while advocating for compensation for the U.S. defence support.
Trump likened the U.S.-Taiwan relationship to an insurance arrangement, noting Taiwan’s minimal direct contributions to American interests.
“You know, we’re no different than an insurance company. Taiwan doesn’t give us anything,” he said.
Although the U.S. supports Taiwan militarily and diplomatically. There’s no formal defence pact akin to those with South Korea and Japan.
Taiwan is focusing on modernising its defence capabilities independently, including initiatives like indigenous submarine development.
Taiwan’s Premier Cho Jung-tai acknowledged the strong ties with the U.S. despite lacking official diplomatic relations or defence agreements.
“Taiwan has steadily strengthened its defence budget and demonstrated its responsibility to the international community,” he told reporters in Taipei.
“We are willing to take on more responsibility; we are defending ourselves and ensuring our security.”
Trump’s comments stirred discussions on Taiwan’s defence responsibilities and its strategic significance in East Asia.
Taiwan refrained from directly responding to Trump’s remarks on defence contributions and international relations.
The U.S. President’s recent remarks suggesting support for Taiwan in case of attack have provoked China, deviating from previous strategic ambiguity.
Since 1979, the U.S. and Taiwan have maintained unofficial ties after Washington recognised Beijing and terminated their mutual defence treaty.
TSMC, a key player in advanced chip manufacturing, faced market fluctuations following Trump’s remarks on Taiwan and the U.S. defence issues.
TSMC, a leader in semiconductor production, plays a crucial role in global technology supply chains, including defence and consumer electronics sectors
Nancy Mbamalu
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