Skip to content
Home » Trump says Taiwan should pay the U.S. for defense; shares of TSMC fall

Trump says Taiwan should pay the U.S. for defense; shares of TSMC fall

In a recent statement, former President Donald Trump suggested that Taiwan should pay the United States for its defense. This controversial remark has sparked discussions and concerns among political analysts and global markets, especially in Taiwan.

Trump’s comments come at a time when tensions between the United States and China are escalating, and Taiwan’s security has become a major concern. The island nation has long relied on the United States for military support and protection against potential threats from China. However, Trump’s suggestion that Taiwan should pay for this defense has raised questions about the future of the relationship between the two countries.

One of the immediate effects of Trump’s statement was seen in the stock market, particularly with shares of Taiwan Semiconductor Manufacturing Company (TSMC) falling. TSMC is one of Taiwan’s largest and most influential companies, and any uncertainty or instability in the region can impact its stock prices.

The reaction to Trump’s comments highlights the delicate balance of power and diplomacy in the Asia-Pacific region. Taiwan is a crucial strategic ally for the United States in its efforts to counter China’s growing influence and assertiveness. However, the idea of Taiwan paying for its defense could potentially strain the relationship between the two countries and create further instability in the region.

It is important to note that Trump’s remarks do not represent the official stance of the United States government, as he is no longer in office. President Joe Biden’s administration has reaffirmed its commitment to Taiwan’s security and has expressed support for the island nation in the face of Chinese aggression.

Nevertheless, Trump’s comments serve as a reminder of the complexities and challenges in the US-Taiwan-China relationship. As tensions continue to rise in the region, it is important for all parties involved to approach these issues with caution and diplomacy to prevent any further escalation or disruptions in the global economy.