• Business
  • Politics
  • Investing
American Investor Club
World News

Trump holds back $400 million in Taiwan aid as China trade talks advance

by admin September 19, 2025
September 19, 2025

The United States’ approach to Taiwan has taken a new turn as President Donald Trump declined to sign off on a military aid package worth more than $400 million. The package, which included munitions and autonomous drones, was rejected earlier this summer.

The decision has not yet been finalised, but it underscores how the Trump administration is weighing Taiwan’s security needs against its efforts to secure a trade agreement with China.

The move comes just as Trump prepares for his first phone call with Chinese President Xi Jinping since June, signalling how military and trade considerations are increasingly being negotiated together.

Military package on hold

Bloomberg reports, the $400 million military package was expected to reach Taiwan through the Presidential Drawdown Authority, the same mechanism previously used by the Biden administration.

However, Trump’s team is leaning towards Taiwan paying directly for the weapons rather than receiving them as aid.

Experts noted that the decision may be reversed, but the delay in approval highlights the administration’s preference for a transactional model of foreign policy.

By pausing the package, the Trump administration signals that Taipei should invest more heavily in purchasing its own defence equipment, rather than relying on Washington’s authorisation of aid shipments.

China trade talks at the centre

The timing of the move coincides with Trump’s renewed push for a sweeping trade agreement with Beijing. The US president is set to hold a call with Xi Jinping on Friday, where topics are expected to range from trade balances to the fate of TikTok’s operations in the US.

A potential agreement could be finalised during a planned meeting between the two leaders next month.

China has consistently opposed arms transfers to Taiwan, which it views as part of its territory. At a regional defence forum in Beijing on Thursday, Chinese Defence Minister Dong Jun reiterated warnings against “external interference” over Taiwan, in what appeared to be a direct reference to US involvement.

The Trump administration’s delay in the aid package could be interpreted as a strategic move to avoid inflaming tensions with Beijing while negotiations over trade and technology continue.

Taiwan boosts its own defence

Meanwhile, Taiwan has been ramping up its domestic defence efforts. President Lai Ching-te’s administration has announced plans to increase military spending, focusing particularly on expanding drone and ship acquisitions.

Last week, the government approved special funding designed to bolster these programmes, demonstrating Taipei’s willingness to enhance its capabilities independently.

The aid package pause places additional pressure on Taiwan to continue funding its own defence strategy, while also maintaining strong ties with Washington.

For Taipei, balancing internal defence commitments with the uncertainty of US decisions is becoming increasingly important as cross-strait tensions remain high.

A shift in US security approach

If the pause becomes permanent, it would signal a significant adjustment in how Washington manages Taiwan’s defence relationship.

Rather than relying on immediate aid transfers, the Trump administration appears to prefer Taiwan investing more directly in its security. This fits with broader policy positions that stress allied nations contributing more to their own defence systems.

For Beijing, the delay provides temporary relief from a potential flashpoint, but it also reflects the complexity of how Taiwan’s security is being tied into larger trade and geopolitical negotiations.

As Trump balances negotiations with Xi Jinping against longstanding defence commitments to Taiwan, the coming weeks may define whether the military package moves forward or remains shelved.

The post Trump holds back $400 million in Taiwan aid as China trade talks advance appeared first on Invezz

previous post
India’s sugar exports fall short for 2024-25 season as Brazil dominates
next post
UK budget faces pressure as deficit widens on higher borrowing

You may also like

Federal Reserve minutes reveal growing divide over path...

October 9, 2025

China tightens rare earth export controls amid global...

October 9, 2025

Analysis: Israel-Hamas peace pact may trim geopolitical risk...

October 9, 2025

UK PM Keir Starmer meets Indian PM Narendra...

October 9, 2025

Hang Seng Bank shares surge 30% on HSBC...

October 9, 2025

Why does Jamie Dimon believe a US stock...

October 9, 2025

Europe’s economy isn’t dying: the real story behind...

October 9, 2025

What $468 million UK-India missile deal says about...

October 9, 2025

UK PM’s India visit: 10 key outcomes shaping...

October 9, 2025

Delta Air Lines shares soar on earnings beat:...

October 9, 2025

    No fluff, just substance. Sign up for curated updates designed to keep you ahead.

    Curated guidance for living and investing wisely. Subscribe for expert analysis on finance, wealth management, and the life decisions that matter.

    Name Price24H (%)
    bitcoin
    Bitcoin(BTC)
    $121,532.79
    -1.28%
    ethereum
    Ethereum(ETH)
    $4,344.99
    -0.80%
    tether
    Tether(USDT)
    $1.00
    0.01%
    binancecoin
    BNB(BNB)
    $1,271.03
    0.27%
    ripple
    XRP(XRP)
    $2.81
    -0.31%
    solana
    Solana(SOL)
    $221.31
    -1.34%
    usd-coin
    USDC(USDC)
    $1.00
    0.02%
    staked-ether
    Lido Staked Ether(STETH)
    $4,343.65
    -0.79%
    dogecoin
    Dogecoin(DOGE)
    $0.249866
    0.97%
    cardano
    Cardano(ADA)
    $0.82
    0.53%
    • Contact us
    • Privacy Policy
    • Terms & Conditions
    • Disclaimer

    Copyright © 2025 americaninvestorclub.com | All Rights Reserved


    Back To Top
    American Investor Club
    • Business
    • Politics
    • Investing
    We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.