Taiwan should pay the USA for Defense Services, they rely on us like an insurance company - Trump says

Republican presidential candidate Donald Trump suggested that Taiwan reimburse the U.S. for defense, citing a lack of tangible gains from Taiwan in a new interview.

In an interview with Bloomberg Businessweek on Tuesday, Trump was asked if he would defend Taiwan against China if he wins the US election in November. China’s ruling Communist party claims Taiwan as a province and has vowed to annex it, refusing to rule out the use of military force. The US does not formally recognise Taiwan but it is’s most important security partner.

In response to the question Trump said Taiwan should be paying the US to defend it, that the US was “no different than an insurance company” and that Taiwan “doesn’t give us anything”.

The US sells Taiwan billions of dollars in weapons under legislative obligations to provide it with the means to defend itself. These sales markedly increased under Trump’s presidency.

However, Trump’s comments suggest his support for Taiwan is not guaranteed. Trump noted China’s increased military aggression towards Taiwan, said he, “wouldn’t feel too secure if I was [Taiwan]”, and questioned why the US was acting as Taiwan’s “insurance” when he claimed, they had taken American chip business.

“I know the people very well, and respect them greatly. They did take about 100% of our chip business. I think Taiwan should pay us for defence,”

Trump emphasized Taiwan’s significant role in the chip business while advocating for compensation for U.S. defense support.

“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 defense pact akin to those with South Korea and Japan.

Taiwan produces more than 90% of the world’s most advanced chips, mostly through the Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world’s largest producer and a major Apple and Nvidia supplier. TSMC is spending billions building new factories overseas, including $65bn on three plants in the US state of Arizona, though it says most manufacturing will remain in Taiwan.

Trump’s comments stirred discussions on Taiwan’s defense responsibilities and its strategic significance in East Asia.

In response to Trump’s comments, Premier Cho Jung-tai said Taiwan and the US have good relations despite the lack of formal ties, but added that Taiwan was increasing its capabilities to defend itself. 

US President Joe Biden'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 recognized Beijing and terminated their mutual defense treaty.