logo
Trump aims to exceed first term's weapons sales to Taiwan

Trump aims to exceed first term's weapons sales to Taiwan

Reuters reported that Taiwan was exploring a multi-billion dollar arms purchase from the US, hoping to win support from the new Trump administration. (AP pic)
WASHINGTON : The US plans to ramp up weapons sales to Taipei to a level exceeding President Donald Trump's first term as part of an effort to deter China as it intensifies military pressure on the democratic island, according to two US officials.
If US arms sales to Taiwan do accelerate, it could ease worries about the extent of Trump's commitment to the island. It would also add new friction to the tense US-China relationship.
The US officials, who spoke on condition of anonymity, said they expect US approvals for weapons sales to Taipei over the next four years to surpass those in Trump's first term, with one of the officials saying arms sales notifications to Taiwan could 'easily exceed' that earlier period.
They also said the US is pressing members of Taiwan's opposition parties not to oppose the government's efforts to increase defence spending to 3% of the island's economic output.
The first Trump administration approved sales of approximately US$18.3 billion worth of weapons to Taiwan, compared with around US$8.4 billion during Joe Biden's term, according to Reuters calculations.
The US is Taiwan's most important international backer and arms supplier despite the lack of formal diplomatic ties between Washington and Taipei.
Even so, many in Taiwan, which China claims as its own, worry that Trump may not be as committed to the island as past US presidents.
On the election campaign trail, Trump suggested Taiwan should pay to be protected and also accused the island of stealing American semiconductor business, causing alarm in Taipei.
China has vowed to 'reunify' with the separately governed island, by force if necessary.
Taiwan's government rejects Beijing's sovereignty claims, saying only the island's people can decide their future.
The US officials said administration officials and Trump himself were committed to 'enhancing hard deterrence' for Taiwan.
'That's where the president is. That's where all of us are,' one US official said, adding that they were working closely with Taiwan on an arms procurement package to be rolled out when Taiwan secured domestic funding.
Taiwan's presidential office told Reuters the government is determined to strengthen its self-defence capabilities and pointed to its proposals to increase defence spending.
'Taiwan aims to enhance military deterrence while continuing to deepen its security cooperation with the US,' presidential office spokesman Wen Lii said.
Taiwan's defence ministry declined to comment on any new arms sales, but reiterated previous remarks by the island's defence minister, Wellington Koo, about the importance of 'solidarity and cooperation of democratic allies'.
'Don't get in the way'
Taiwan's President Lai Ching-te and his Democratic Progressive Party (DPP) aim to increase defence spending to 3% of GDP this year through a special defence budget.
However, the island's parliament, controlled by opposition parties the Kuomintang (KMT) and the Taiwan People's Party (TPP), passed budget cuts earlier this year that threatened to hit defence spending.
That triggered concerns in Washington, where officials and lawmakers have regularly said the US cannot show more urgency over Taiwan's defence than the island itself.
'We're messaging pretty hard (in Taipei) to the opposition. Don't get in the way of this. This isn't a Taiwanese partisan question. This is a Taiwanese survival question,' one of the US officials told Reuters.
Three people in Taiwan with direct knowledge of the situation confirmed that the US government and US congressional visitors have been pressing the opposition parties in Taiwan not to block defence spending, especially the coming special defence budget, which is expected to be proposed to parliament later this year.
'As long as they knew there were people from the opposition in the room, they directly asked them not to cut the defence budget,' one of the people said.
Alexander Huang, director of the KMT's international department, told Reuters it was 'beyond question' that the party firmly supports increasing the defence budget and its 'doors are open' to the US government and the ruling DPP for consultations.
'Supporting an increased budget does not mean serving as a rubber stamp, nor does it preclude making adjustments or engaging in negotiations regarding the special budget proposals put forth by the DPP administration,' he added.
The much smaller TPP said it has 'always had smooth communication with the US side and has continued to engage in in-depth dialogue on issues such as national defence and regional security.'
Reuters reported in February that Taiwan was exploring a multi-billion dollar arms purchase from the US, hoping to win support from the new Trump administration.
New weapons packages are expected to focus on missiles, munitions and drones, cost-effective means to help improve Taiwan's chances of rebuffing any military action by China's much larger forces.
For years, China has been steadily ramping up its military pressure to assert its sovereignty claims over the island that is home to critical chip manufacturing vital to the global economy.
Separately, one of the US officials said the Trump administration would not object to a transit this year through US territory by Lai, whom Beijing labels a 'separatist'.
Past visits to the US by Taiwanese officials have triggered angry objections by China, which sees such trips as inappropriate given that the US has diplomatic relations with Beijing, not Taipei.
Taiwan's presidential office spokesman Lii said there are currently 'no plans for a presidential transit through the US at the moment'.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

How Trump's trade war is upending the global economy
How Trump's trade war is upending the global economy

The Sun

time41 minutes ago

  • The Sun

How Trump's trade war is upending the global economy

U.S. President Donald Trump's tariff decisions since he took office on January 20 have shocked financial markets and sent a wave of uncertainty through the global economy. Here is a timeline of the major developments: February 1 - Trump imposes 25% tariffs on Mexican and most Canadian imports and 10% on goods from China, demanding they curb the flow of fentanyl and illegal immigrants into the United States. February 3 - Trump suspends his threat of tariffs on Mexico and Canada, agreeing to a 30-day pause in return for concessions on border and crime enforcement. The U.S. does not reach such a deal with China. February 7 - Trump delays tariffs on de minimis, or low-cost, packages from China until the Commerce Department can confirm that procedures and systems are in place to process them and collect tariff revenue. February 10 - Trump raises tariffs on steel and aluminum to a flat 25% 'without exceptions or exemptions'. March 3 - Trump says 25% tariffs on goods from Mexico and Canada will take effect from March 4 and doubles fentanyl-related tariffs on all Chinese imports to 20%. March 5 - The president agrees to delay tariffs for one month on some vehicles built in Canada and Mexico after a call with the CEOs of General Motors and Ford and the chair of Stellantis. March 6 - Trump exempts goods from Canada and Mexico under a North American trade pact for a month from the 25% tariffs. March 26 - Trump unveils a 25% tariff on imported cars and light trucks. April 2 - Trump announces global tariffs with a baseline of 10% across all imports and significantly higher duties on some of the U.S.' biggest trading partners. April 9 - Trump pauses for 90 days most of his country-specific tariffs that kicked in less than 24 hours earlier following an upheaval in financial markets that erased trillions of dollars from bourses around the world. The 10% blanket duty on almost all U.S. imports stays in place. Trump says he will raise the tariff on Chinese imports to 125% from the 104% level that took effect a day earlier. This pushes the extra duties on Chinese goods to 145%, including the fentanyl-related tariffs imposed earlier. April 13 - The U.S. administration grants exclusions from steep tariffs on smartphones, computers and some other electronics imported largely from China. April 22 - The Trump administration launches national security probes under Section 232 of the Trade Act of 1962 into imports of both pharmaceuticals and semiconductors as part of a bid to impose tariffs on both sectors. May 4 - Trump imposes a 100% tariff on all movies produced outside the U.S. May 9 - Trump and British Prime Minister Keir Starmer announce a limited bilateral trade agreement that leaves in place 10% tariffs on British exports, modestly expands agricultural access for both countries and lowers prohibitive U.S. duties on British car exports. May 12 - The U.S. and China agree to temporarily slash reciprocal tariffs. Under the 90-day truce, the U.S. will cut the extra tariffs it imposed on Chinese imports to 30% from 145%, while China's duties on U.S. imports will be slashed to 10% from 125%. May 13 - The U.S. cuts the low value 'de minimis' tariff on China shipments, reducing duties for items valued at up to $800 to 54% from 120%. May 23 - Trump says he is recommending a straight 50% tariff on goods from the European Union starting on June 1. He also warned Apple it would face 25% tariff if phones it sold in the U.S. were manufactured outside of the country. May 25 - Trump backpedals on his threat to slap 50% tariffs on imports from the EU, agreeing to extend the deadline for talks between the U.S. and the block until July 9. May 28 - A U.S. trade court blocked Trump's tariffs from going into effect in a sweeping ruling that the president overstepped his authority by imposing across-the-board duties on imports from U.S. trade partners. The Trump administration said it would appeal the ruling. May 29 - A federal appeals court temporarily reinstates the most sweeping of Trump's tariffs, saying it was pausing the lower court's ruling to consider the government's appeal, and ordered the plaintiffs in the cases to respond by June 5 and the administration by June 9. May 30 - At a rally in Pennsylvania, Trump says he plans to increase tariffs on imported steel and aluminum to 50% from 25%.

Asia's factory activity shrinks in May as US tariffs bite
Asia's factory activity shrinks in May as US tariffs bite

The Star

time2 hours ago

  • The Star

Asia's factory activity shrinks in May as US tariffs bite

A welder works on a K9 Howitzer at Hanwha Aerospace's manufacturing facility in Changwon, South Korea, on Thursday, April 18, 2024. - Bloomberg TOKYO: Asia's factory activity shrank in May as soft demand in China and the impact of U.S. tariffs took a heavy toll on companies, private surveys showed on Monday, highlighting the darkening outlook for the once fast-growing region. Trade-reliant Japan and South Korea continued to see manufacturing activity contract in May as U.S. President Donald Trump's automobile tariffs cloud the outlook for exports. Adding to the gloom, an official survey on Saturday showed China's manufacturing activity shrank in May for a second month in a sign of weakness in the world's second-largest economy. With many Asian economies making little progress in trade negotiations with the U.S., uncertainty will likely keep companies from boosting production or spending, analysts said. "It's hard to expect a pick-up in Asia's manufacturing activity any time soon with countries in the region slapped with quite high 'reciprocal' tariffs," said Toru Nishihama, chief emerging market economist at Dai-ichi Life Research Institute. "With domestic demand weak, China is flooding Asia with cheap exports, which is also putting deflationary pressure on the region's economies," he said. Japan's final au Jibun Bank Manufacturing Purchasing Managers' Index (PMI) stood at 49.4 in May, up from April but staying below the 50.0 line that indicates contraction for the 11th successive month, a private survey showed on Monday. The PMI for South Korea, Asia's fourth-largest economy, stood at 47.7 in May, also staying below the 50 mark for a fourth month due to frail demand and the hit from U.S. tariffs, a survey by S&P Global showed. Both Japan and South Korea saw their economies contract in the first quarter, as Trump's tariffs and uncertainty over U.S. trade policy weighed on exports and corporate activity. There is little sign conditions will improve. On Friday, Trump said China had violated a two-way deal to scale back tariffs, whereas China contended it had maintained communication on trade with the United States. Trump also announced a doubling of worldwide steel and aluminium tariffs to 50%, once again rattling international trade. Japan and the U.S. on Friday agreed to hold another round of trade talks ahead of the G7 summit in June, but Japan's top tariff negotiator said no deal would be reached without concessions on all U.S. tariffs, including on automobiles. Vietnam, Indonesia and Taiwan also saw factory activity contract in May, private surveys showed. - Reuters

Gold prices climb as tariff jitters lift safe-haven demand
Gold prices climb as tariff jitters lift safe-haven demand

The Star

time2 hours ago

  • The Star

Gold prices climb as tariff jitters lift safe-haven demand

GOLD prices climbed on Monday as an escalation in the Russian war in Ukraine and U.S. President Donald Trump's fresh threat to double tariffs on imported steel and aluminum prompted investors to seek refuge in safe-haven bullion. Spot gold was up 0.5% at $3,305.85 an ounce, as of 0204 GMT. U.S. gold futures rose 0.4% to $3,329.80. "With trade and geopolitical worries bubbling to the surface once again, it's no surprise to see gold ticking higher to start the week," said Tim Waterer, chief market analyst at KCM Trade. "Risk assets are on the backfoot to start the week while a dip in the dollar is also keeping gold supported." Trump said on Friday that he plans to raise tariffs on imported steel and aluminum to 50% from 25%, prompting the European Commission to warn that Europe is prepared to retaliate. Ukraine and Russia escalated hostilities ahead of their second round of peace talks in Istanbul, with a wave of attacks that included one of Ukraine's boldest strikes of the war and an overnight drone assault by Russia. The U.S. dollar index edged 0.2% lower, making bullion less expensive for overseas buyers. Markets are awaiting speeches from several U.S. Federal Reserve officials this week for cues on the monetary policy outlook, with Fed Chair Jerome Powell set to speak later in the day. Fed Governor Christopher Waller said that interest rate cuts remain possible later this year even as the Trump administration's tariff regime is likely to push up price pressures temporarily. Gold, which is considered as a safe-haven asset during the time of geopolitical and economic uncertainty, tends to thrive in low-interest rate environment. Meanwhile, Trump and Chinese President Xi Jinping are expected to speak soon to iron out trade issues including a dispute over critical minerals, according to Treasury Secretary Scott Bessent on Sunday. Elsewhere, spot silver was steady at $32.99 an ounce, platinum was down 0.6% at $1,049.72 and palladium fell 0.5% to $965.77. (Reporting by Anmol Choubey in Bengaluru; Editing by Sherry Jacob-Phillips)

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store