Not long ago, Taiwan enjoyed strong bipartisan support in Washington, widely seen as a steadfast democratic partner against China. However, as President Donald J. Trump begins his second term, Taiwan is facing a shift in its relationship with its key backer, the United States—one that is becoming more uncertain and transactional rather than based on shared democratic values.
Trump has accused Taiwan of underinvesting in its own security while benefiting unfairly from its semiconductor dominance. In response, Taiwanese officials and business leaders have been working to reassure the new administration of their commitment to cooperation. Delegations have traveled to Washington, presenting charts detailing Taiwan’s military expenditures, attending Trump’s inauguration events, and proposing new trade deals in energy and other sectors to emphasize Taiwan’s importance to American interests.
Despite these efforts, concerns persist over Trump’s potential policies, including pressuring Taiwanese firms to relocate advanced semiconductor production to the U.S. or imposing tariffs on Taiwanese chips. Taiwanese officials have been preparing countermeasures to mitigate potential economic fallout. Minister of Economic Affairs Kuo Jyh-Huei stated, “We are preparing for a range of scenarios, but revealing details now would not be in Taiwan’s best interest.”
Trade and Defense Concerns Loom
Beyond semiconductors, Trump’s administration has raised concerns over Taiwan’s trade surplus with the U.S. Additionally, despite billions in pending U.S. arms sales, Washington views Taiwan’s military spending as insufficient.
“Taiwan is preparing some presents for Trump,” said Jeremy Chih-Cheng Chang, the chief executive officer of the Research Institute for Democracy, Society and Emerging Technology in Taipei. “They have already indicated some, as you have seen in news reports — like buying liquefied natural gas — but there are sure to be others.”
To reinforce ties with Washington, Taiwanese leaders have made diplomatic overtures, including meetings with Trump’s cabinet nominees and Republican lawmakers. However, their efforts have yielded limited results so far, according to U.S. officials.
With Trump’s administration adopting a more transactional foreign policy, Taiwan’s ability to navigate these pressures will be crucial in maintaining its strategic partnership with the U.S.