Trump Administration Announces Eleven Billion Arms Sale Package for Taiwan

What Happened?

Yesterday, the Trump Administration announced an eleven-billion-dollar arms sale package for Taiwan, which, if approved by Congress, would be the largest ever arms sale to Taiwan by the United States. The arms sales would include more than $4 billion each for high mobility artillery rocket systems, known as HIMARS, along with more than $700 million for Javelin and anti-armor missiles, as well as Altius kamikaze drones made by the military technology company Anduril.

According to the Pentagon, the proposed arms package would enable Taiwan to ‘modernize its armed forces and to maintain a credible defensive capability.’

Why it Matters

The proposed arms sale to Taiwan is significant for several reasons. Eleven billion dollars is nearly one-third of Taiwan’s total annual military budget, so the amount is substantial. The types of weapons included in the sale, including drones and anti-tank weapons, are precisely the kinds of weapons Ukraine has used to blunt the Russian invasion since 2022. Those weapons systems would likely be equally effective against a potential Chinese invasion of Taiwan.

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Passage of the proposed arms deal for Taiwan is likely, given the high level of bi-partisan support for Taiwan. China has been increasingly aggressive towards Taiwan this year, ratcheting up rhetoric and increasing shows of force in and near Taiwan’s territorial waters and airspace. Chinese President Xi Jinping has ordered China’s armed forces to be ready for possible military action against Taiwan by 2027, though he refers to those efforts as defensive in nature.

A spokesman for China’s Foreign Ministry, Guo Jiakun, said the arms sale ‘will only hasten pushing Taiwan toward the perils of war.’ Mr. Jiakun also added that China views Taiwan as a red line in its relations with the United States. China regards Taiwan as part of its own territory, but sentiment in Taiwan is mixed, with some people having pro-Chinese sympathies while the majority support Taiwanese independence. 

Taiwan is a world-leading manufacturer of superconductors, which are vital for the type of computer chips needed to build and sustain AI infrastructure. China and the U.S. are in a race for AI supremacy, and both understand the vital role Taiwan’s supply chain plays in winning that race.

In the past, most U.S. Presidents have embraced the doctrine of deliberate vagueness by refusing to openly say they would get involved militarily in a war between Taiwan and China. But the growth of AI and the importance of superconductors have likely influenced U.S. policy makers to take a more deliberate stance towards supporting Taiwan.

How it Affects You

The arms sale would be a win for Taiwan, but could also strain U.S.-China relations, which have already been battered by tariffs from the Trump Administration. Trade wars can turn into shooting wars, and Taiwan could become the place where that happens between the U.S. and China if care isn’t taken to maintain stability in the Pacific region.

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