Home Asia Taiwan Considering Multi-Billion Dollar Defence Deal With US

Taiwan Considering Multi-Billion Dollar Defence Deal With US

Taiwan plans to propose a special defence budget that prioritises precision ammunition, air-defence upgrades, command and control systems, equipment for the reserve forces and anti-drone technology.

Taiwan is considering purchasing billions in U.S. arms, seeking support from the new Trump administration amid China’s military pressure, according to sources.

Three sources familiar with the situation, speaking to Reuters on condition of anonymity given the sensitivity of the situation, told Reuters that Taiwan is in talks with Washington.

The package is meant to demonstrate to the United States that Taiwan is committed to its defence, one of the sources said.

Coastal Defence Cruise Missile

A second source said the package would include coastal defence cruise missiles and HIMARS rockets.

“I would be very surprised if it was less than $8 billion. Somewhere between $7 billion to $10 billion,” the source added.

The White House did not immediately respond to a request for comment. However, U.S. national security adviser Mike Waltz has said he wants to speed delivery of weapons to Taiwan.

Taiwan’s defence ministry declined to comment on specific purchases but said it is focused on building its defences.

“Any weaponry and equipment that can achieve those goals for building the military are listed as targets for tender,” it said.

China claims democratically governed Taiwan as its own territory and has never renounced the use of force to bring the island under its control. Taiwan strongly objects to China’s sovereignty claims and says only the island’s people can decide their future.

Trump-Taiwan Relations

U.S. President Donald Trump unnerved chip powerhouse Taiwan on the election campaign trail by saying the island stole American semiconductor business. This month, he threatened tariffs on chip imports.


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But his administration maintained diplomatic support for the Chinese-claimed island.

Trump and Japanese Prime Minister Shigeru Ishiba issued a joint statement on February 7 opposing any attempt to change the current situation in the Taiwan Strait through force or coercion.

The U.S. State Department also removed language on its website that it does not support Taiwan independence, a move praised by the island’s government. China has urged the U.S. to “correct its mistakes”.

Special Defence Budget

Taiwan plans to propose a special defence budget that prioritises precision ammunition, air-defence upgrades, command and control systems, equipment for the reserve forces and anti-drone technology, a third source familiar with the matter said.

During his 2017-2021 term, Trump established regular arms sales to Taiwan, including multi-billion dollar deals for F-16 fighter jets. The Biden administration continued these sales, though often with smaller price tags.

Taiwanese officials see encouraging signs from Trump’s administration even as tariff threats weigh on that optimism.

‘Grand Bargain’ With China

Taiwan does not believe Trump is looking to make a “grand bargain” with Chinese President Xi Jinping to sell out Taiwan’s interests, one of the sources said. Trump is more concerned with putting tariffs on semiconductors, the source said.

In another sign of U.S. commitment to Taiwan, the top U.S. diplomat in Taiwan, Raymond Greene, will retain his post, three sources told Reuters, even as other U.S. diplomatic postings undergo major reshuffles.

A spokesperson for the U.S. State Department said Greene remains director of the American Institute in Taiwan, the unofficial U.S. embassy in Taipei.

(With inputs from Reuters)