Taiwan Ramps Up Defence Spending Amid US Pressure and China Tensions
In a move aimed at bolstering its national security and sovereignty, Taiwan has announced plans to increase its defence budget to over 3% of its GDP in 2026. This decision, made public by Premier Cho Jung-tai on Thursday, comes as the island nation faces growing pressure from the United States to invest more in its protection.
Over the past decade, Taiwan has significantly ramped up its investment in military equipment and weapons in response to intensifying pressure from China, which claims the democratic island as part of its territory and has threatened to seize it by force. According to Cho, the latest hike in defence spending is “another concrete demonstration to the world and the people of Taiwan of our resolve and ability to safeguard national sovereignty and security.”
The proposed spending, which amounts to NT$949.5 billion (US$31.1 billion) or 3.23% of GDP, needs to be approved by the opposition-controlled parliament before it can take effect. Taiwan’s cabinet has allocated this amount for defence spending next year, with Cho emphasizing that the total defence budget is calculated using NATO’s model and standards, including the budget for the coast guard.
This increased spending is in line with President Lai Ching-te’s previous vow to increase defence spending to more than 3% of GDP, as Washington pressured the island and other governments around the world to spend more on their security. The announcement also comes as Taipei seeks to strike an agreement with US President Donald Trump’s administration for a lower tariff on Taiwanese shipments to the United States.
Earlier this month, Trump imposed a temporary 20% tariff on Taiwan’s imports as part of his global trade war. The two sides are still trying to reach an agreement. Meanwhile, the China-friendly Kuomintang party, which controls the island’s legislature with the help of the Taiwan People’s Party, slashed the Lai government’s 2025 budget, which had planned to increase defence spending to a record NT$647 billion (around 2.5% of GDP).
While Taiwan has a homegrown defence industry and has been upgrading its equipment, it would be outgunned in a conflict with China and relies heavily on US arms sales to bolster its security capabilities. Trump has previously suggested that Taiwan should pay the United States for its protection and accused the island of stealing the US semiconductor industry.
As tensions with China continue to escalate, Taiwan’s decision to increase its defence spending reflects its commitment to prioritizing national security and sovereignty. With the proposed spending awaiting parliamentary approval, the island nation is sending a strong message to the world that it is determined to protect itself against external threats.
