Trump’s foreign aid freeze sounds security alarm in Taiwan amid cross-strait tension

‘Any aid cuts and the USAID shutdown would make Taiwan’s international position even more precarious’: opposition TPP legislator Lin Yi-jun

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Taiwan’s foreign ministry is playing down the potential impact of the US foreign aid freeze but lawmakers on the island and in the US have expressed concern. Photo: US Army/AP

Published: 10:00am, 9 Feb 2025Updated: 5:34pm, 9 Feb 2025

The US foreign aid freeze ordered by the White House has raised alarm in Taiwan, with analysts warning that the move could broadly weaken the island’s defence and security at a time of growing military pressure from Beijing.

Beyond the military implications, the freeze could force Taiwan’s Democratic Progressive Party (DPP) government to recalibrate its approach to both Washington and Beijing, as reduced United States support may create an opening for Beijing to expand its influence, according to analysts.

On January 24, the US State Department issued a “stop work” order freezing nearly all foreign assistance for 90 days to review its alignment with US President Donald Trump’s foreign policy. It exempts only emergency food aid and foreign military financing for Israel and Egypt, without mentioning key US security partners such as Ukraine or Taiwan.

Although Taiwan has not received direct US foreign aid since Washington switched its diplomatic recognition to Beijing in 1979, military support has grown in recent years.

Under former president Joe Biden, the US approved a landmark US$345 million military aid package in 2023, followed by a further US$571 million package last year, providing Taiwan with free weapons, training and services.

Congress also authorised up to US$10 billion in interest-free loans for Taiwan until 2027.