Taiwan Allocates $2.2 Billion for U.S. Arms Amid Growing Military Pressure from China.

Taiwan plans to allocate 70.6 billion New Taiwan dollars (US$2.2 billion) for American weapons in 2024, signaling its commitment to President-elect Donald Trump’s suggestion that it contribute more toward U.S. military support. The island, which relies heavily on U.S. assistance to counter growing military pressure from Beijing, confirmed its defense budget plans on Monday while adhering to its ongoing procurement agreements with Washington.

According to Taiwan’s defense ministry, Taipei has signed contracts with the U.S. for 21 procurement projects, totaling NT$716.6 billion (US$22.6 billion), with final payments scheduled by 2031. Approximately NT$373.1 billion has already been paid, while NT$343.5 billion remains outstanding and will be disbursed according to agreed timelines. Next year’s defense budget will fund portable short-range air defense missiles and radar system upgrades, among other items.

Taiwan’s partnership with the U.S. has deepened significantly since Donald Trump’s first term as president, during which arms sales and diplomatic engagement intensified. Former President Tsai Ing-wen’s 2016 phone call with Trump marked a turning point, sparking strong reactions from Beijing. Under Trump’s administration, Taiwan purchased US$18 billion in weapons, US$4 billion more than during the Obama administration's two terms. The partnership continued to grow under President Joe Biden amid escalating U.S.-China tensions.

During his campaign, Trump adopted what has been described as “bluntly transactional diplomacy,” criticizing Taiwan’s military spending and dominance in semiconductors while questioning the effectiveness of U.S. military support against a potential Chinese invasion. Reports suggest Taiwan has sought to address these criticisms by proposing significant new arms deals, with speculation of a US$15 billion weapons package discussed with Trump’s team. Taiwan’s defense minister, Wellington Koo, denied such reports but emphasized the ongoing military exchange mechanisms.

The defense ministry stated that arms purchases are based on assessments of potential threats and lessons from recent conflicts, such as the war in Ukraine. Budget allocations align with annual funding availability and the progress of individual projects.

Lawmakers have raised concerns about delays in U.S. arms deliveries, which the defense ministry attributed to disruptions from the COVID-19 pandemic. However, production has resumed, and delivery schedules are reportedly accelerating. As of August 2024, undelivered U.S. arms sales to Taiwan totaled US$20.53 billion, according to a report by the Cato Institute.

Shu Hsiao-Huang, a researcher at the Institute for National Defense and Security Research, noted that delays have arisen partly due to alignment issues with U.S. military needs and high global demand for weapons such as Stinger missiles. Recent procurement plans submitted to Taiwan’s legislature detail purchases including 108 M1A2T Abrams tanks, 66 F-16V fighter jets, 29 HIMARS rocket systems, and 100 Harpoon land-based missile systems.