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Trump Pauses $400 Million Taiwan Aid Amid China Talks

Taiwan boosts its defense with new missile systems and homegrown weapons as U.S. support becomes less certain during high-stakes trade negotiations with China.

6 min read

In a striking turn of events, the United States’ commitment to Taiwan’s security has come under renewed scrutiny, as President Donald Trump declined to approve a $400 million military aid package to the island in recent months. According to The Washington Post, this decision unfolded against the backdrop of delicate trade negotiations and preparations for a potential summit with Chinese President Xi Jinping. The move marks a sharp departure from longstanding U.S. policy, raising concerns in Taipei and among American allies about Washington’s willingness to support Taiwan in the face of growing threats from Beijing.

President Trump’s decision, which reportedly included halting the shipment of munitions and autonomous drones, was made as his administration sought a trade breakthrough with China. The aid package, initially intended to bolster Taiwan’s defenses, became entangled in broader U.S.-China disputes over tariffs, technology, and rare earths. As India Today noted, this transactional approach to foreign policy has left some observers wondering if Trump is willing to “sacrifice” Taiwan’s security for economic gains.

The timing of the aid suspension is significant. Trump and Xi Jinping were scheduled to speak on September 19, 2025—only their second conversation since Trump’s return to the White House in January. The agenda for the call included high-stakes issues like the fate of TikTok, rare earth minerals crucial to American industry, and reciprocal tariffs that have rattled global markets. Meanwhile, American farmers have grown anxious as China shifted its soybean purchases from the U.S. to Brazil, further complicating the economic stakes of the ongoing negotiations.

For Taiwan, the uncertainty in Washington has been deeply unsettling. The island, which China claims as its own territory, faces constant threats of invasion. Under Xi Jinping’s leadership, Beijing has intensified military, diplomatic, and economic pressure on Taiwan, sending warships and aircraft into its surrounding waters and airspace almost daily. In a December 2024 speech, Xi declared, “No one can sever our family bonds, and no one can stop the historical trend of national reunification,” according to Reuters. Chinese Defense Minister Dong Jun echoed this sentiment at the Beijing Xiangshan Forum on September 18, 2025, warning, “We will never allow any separatist plot for Taiwan independence to succeed, and we stand ready to thwart any external military interference at any time.”

Despite—or perhaps because of—these threats, Taiwan has been ramping up its own defense efforts. President Lai Ching-te recently announced plans to raise defense spending to 5% of GDP before 2030, a significant increase aimed at deterring Chinese aggression. The government also approved special funding to acquire more drones and ships, as reported by Bloomberg. “Taipei, for its part, has been ramping up its own defence commitments, partly to placate Washington,” the outlet noted, highlighting the island’s determination to demonstrate self-reliance.

At the Taipei Aerospace & Defense Technology Exhibition, held from September 18 to 20, 2025, Taiwan’s Ministry of National Defense revealed plans to purchase nine additional U.S.-made National Advanced Surface-to-Air Missile Systems (NASAMS) for the Republic of China Air Force. These systems will complement the three already acquired in October 2024, forming what military sources described as an “air defense wall” across the island. The goal: to strengthen protection against Chinese aircraft and missiles, underscoring Taipei’s resolve to bolster its military capabilities despite uncertainties in U.S. support.

In a further demonstration of its defense innovation, Taiwan unveiled a prototype low-cost autonomous cruise missile on September 17, 2025. Developed jointly with U.S. defense firm Anduril Industries, the missile is adapted from Anduril’s Barracuda-500 and is designed for use against both sea and land targets. The National Chung-Shan Institute of Science and Technology (NCSIST), Taiwan’s top arms manufacturer, announced plans to begin production within the next year and a half, with each missile costing about $216,000. “The entire supply chain of the missile will be in Taiwan. That is the overall direction of all future cooperation,” said NCSIST President Li Shih-chiang, according to CNN. The institute also displayed prototypes of an underwater drone and an autonomous mobile mine, both slated for joint development with Anduril.

Anduril founder Palmer Luckey praised Taiwan’s manufacturing and technological prowess during a recent visit, stating, “Taiwan is on the verge of a techno industrial renaissance in national defense, one that’s built on top of its techno industrial renaissance in consumer electronics, in industrial electronics, one that’s made Taiwan the envy of the world.” This sentiment reflects optimism among some defense experts that Taiwan can leverage its industrial base to enhance its security, even as the U.S. faces growing demands for weapons worldwide, slowing deliveries to Taipei.

Still, the abrupt halt in U.S. military aid has rattled nerves in Taiwan. The island’s leaders have long depended on American backing to deter Chinese aggression. Under former President Joe Biden, Washington approved more than $2 billion in military aid packages for Taiwan, using the Presidential Drawdown Authority to expedite deliveries. Trump, by contrast, “does not support sending weapons without payment, a preference also on display with Ukraine,” as The Washington Post reported. His administration’s stance is that allies should purchase American weapons outright, rather than rely on U.S. largesse.

Despite the pause in aid, U.S. officials have sought to reassure Taipei of ongoing support. In late August 2025, Republican Senator Roger Wicker, head of the U.S. Senate Armed Services Committee, visited Taiwan and met with President Lai Ching-te. “It is our determination and our intention that Taiwan remain free and make its own decisions,” Wicker stated. “Part of maintaining the freedoms that we have is enhanced cooperation militarily, enhanced cooperation with our defense industrial base, making the best use of those funds.”

Meanwhile, defense officials from the U.S. and Taiwan met in Anchorage, Alaska, in August 2025 to discuss a potential weapons sales package that could total billions of dollars, including drones, missiles, and sensors to monitor the island’s coastline. These talks suggest that, despite the current pause, the security relationship remains active—though perhaps more transactional than in the past.

China, for its part, has made clear that any foreign military support for Taiwan is unacceptable. At the Beijing Xiangshan Forum, Defense Minister Dong Jun condemned “Cold War mentality, hegemonism and protectionism,” calling on countries to stand up against “bullying acts.” Last week, Dong warned U.S. Defense Secretary Pete Hegseth that any attempt to use Taiwan to contain China is “doomed to fail.”

As the diplomatic chess game continues, the fate of Taiwan’s security hangs in the balance. With Washington’s support appearing less certain and Beijing’s pressure mounting, Taipei is left to navigate a perilous path—one that demands both strategic innovation and steadfast resolve. For the people of Taiwan, the stakes could hardly be higher.

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