TAIPEI (Taiwan News) — The UK-based Financial Times on Tuesday suggested the Legislative Yuan's decision to freeze key elements of the defense budget raises the risk that Taiwan alienates Trump.
According to the report, Taiwan’s government is eager to demonstrate to the new US administration that it is taking active measures to bolster its defenses. Trump, in July said the US was acting like an insurance company for Taiwan, claiming that Taiwan “doesn’t give us anything.”
However, just hours after Trump started his second term on Monday, the Legislative Yuan voted to freeze 50% of the submarine budget, 30% of the Ministry of Defense's operational funds, and one-third of the budget for an unmanned aerial vehicle industrial park. In addition, the MND’s public relations budget was slashed by 60%.
The report said these defense budget reductions are “heightening the risk that the country alienates US President Donald Trump" at a time when Taiwan needs strong backing from Washington.
Premier Cho Jung-tai (卓榮泰) criticized the decision as showing the international community that Taiwan's legislature has reduced its commitment to national defense. He added, “Our international credibility, responsibility, and determination have all been undermined, which is highly inappropriate,” per CNA.
Deputy Defense Minister Po Horng-huei (柏鴻輝) warned that this was the most serious budget freeze in the history of the MND, per CNA. He warned that freezing operational funds would hinder the military’s daily efforts to counter China’s gray zone tactics while halting funds for the UAV industrial park would derail key projects.
Po said that cutting 60% of the MND’s public relations budget leaves the Political Warfare Bureau with limited resources to combat the CCP’s disinformation campaigns and cognitive warfare. He remarked, “I believe that national defense has taken a step backward this year.”
In August, the Cabinet proposed an overall defense budget of NT$647 billion, equivalent to 2.45% of Taiwan’s GDP. This is a slight decrease from 2.5% in 2024, and falls short of the 3% GDP target recommended by US officials and defense experts, such as Rupert Hammond-Chambers, president of the US-Taiwan Business Council.
Elbridge Colby, Trump’s nominee for undersecretary of defense for policy, last year repeatedly urged Taiwan to increase its defense spending from 2.5% of its GDP to a minimum of 5%. He stressed that unless Taiwan strengthens its defenses to counter the threat from China, US aid would be futile.