Taiwan Plan to Hike Defence Spending May Not Be Enough to Satisfy Trump

Analysts Say It Would Send a Strong Signal, But Opposition Parties May Scuttle Plan

- Yip Wai Yee

TAIPEI — Taiwan's plan to raise defence spending to 3.32 per cent of its gross domestic product (GDP) sends a strong signal of the island's self-defence commitments, but the figure is unlikely to be enough to appease US President Donald Trump, analysts said.

Washington has repeatedly called on Taipei to boost its defence spending amid concerns that the island is too complacent about its security in the face of rising threats from China, which claims Taiwan as its own territory.

By increasing its defence spending, Taipei is also hoping that the US will be more willing to come to its aid in the event of a Chinese invasion.

But it remains to be seen if the proposed increase will be passed by Taiwan's Parliament — which has been paralysed by political gridlock — when the budget undergoes legislative review in September.

Back in January, Taiwan's opposition used its legislative majority to slash or freeze significant portions of the government's 2025 defence budget, including cutting 60 per cent of the Defence Ministry's publicity budget.

Should the proposed budget for 2026 be whittled down to less than 3 per cent of GDP, it would "send the wrong signal to the White House" as Taiwan would be perceived as not taking its defence seriously, said Dr Yeh Yao-yuan, a Taiwan studies expert at the University of St Thomas in Houston, Texas.

On Aug 21, Taiwan Premier Cho Jung-tai said that the Executive Yuan had proposed a defence budget amounting to NT$949.5 billion (S$40 billion) for the 2026 fiscal year — a year-on-year rise of nearly 23 per cent — in a show of the government's determination to do its part for Taiwan's security.

"This is a concrete demonstration to the world and to our people of our determination and ability to safeguard national sovereignty and security, maintain stability and security in the Indo-Pacific region and fulfil our shared responsibilities to the world," Mr Cho said at a media briefing.