Taiwan negotiates multibillion-dollar defense contract with US - Reuters

According to agency sources, the package is expected to include cruise missiles for coastal defense and rockets for HIMARS multiple launch rocket systems.

"I would be very surprised if it was less than $8 billion. Somewhere between $7 billion to $10 billion," a source noted.

Another source familiar with the matter stated that Taiwan plans to propose a special defense budget prioritizing precision munitions, air defense modernization, command and control systems, equipment for reserve forces, and anti-drone technologies.

US National Security Advisor Mike Waltz told the agency that he wants to accelerate arms deliveries to the island nation.

Taiwan's Ministry of Defense declined to comment on the specifics of the purchases but emphasized its focus on strengthening its defense.

"Any weaponry and equipment that can achieve those goals for building the military are listed as targets for tender," the ministry's statement read.

Trump administration's position on Taiwan

During his election campaign, US President Donald Trump claimed that Taiwan had stolen the American semiconductor business. In early February, already in office, Trump threatened to impose tariffs on the import of Taiwanese microchips.

At the same time, the current administration has maintained diplomatic support for the island, which China claims as its own.

On February 7, Trump and Japanese Prime Minister Shigeru Ishiba issued a joint statement opposing any attempts to change the status quo in the Taiwan Strait through force or coercion. The US State Department also removed language from its website stating that it does not support Taiwan’s independence, which was positively received by the island’s government. China called on the US to correct its mistakes.

During his 2017-2021 presidency, Donald Trump established regular arms sales to Taiwan, including multi-billion-dollar deals for F-16 fighter jets. The Biden administration continued these deliveries, though often at reduced pricing rates.

Taipei sees encouraging signs from Washington, despite tariff threats overshadowing this optimism.

A Reuters source indicated that Taiwan’s government does not believe Trump would make a grand deal with Chinese President Xi Jinping at the expense of Taiwan’s interests. According to the source, Trump is more focused on imposing tariffs on semiconductors.

Another sign of US commitment to Taiwan is that Raymond Greene, the top American diplomat on the island, will remain in his position despite major reshuffling in other US diplomatic posts. A US State Department representative confirmed that Greene will continue as the director of the American Institute in Taiwan, the de facto US embassy in Taipei.

Threat of Taiwan's occupation by China

The government of the People's Republic of China considers Taiwan (the Republic of China or Chinese Taipei) part of its territory and regularly threatens to use force to bring the island under its control.

Taipei firmly rejects Beijing’s sovereignty claims, emphasizing that only the people of the island have the right to decide their future.

China’s military frequently conducts drills and provocations near Taiwan, destabilizing the situation and increasing the risk of armed conflict between the two sides.

At the end of January, US Secretary of State Marco Rubio expressed concern over China’s coercive actions against Taiwan. Meanwhile, Chinese Foreign Minister Wang Yi stated that Beijing would never allow Taiwan to be separated from the mainland.

Analysts suggest that such statements indicate worsening US-China relations, potentially entering a period of heightened tension.

Previously, China criticized a US military aid package for Taiwan worth over half a billion dollars.