Trump says Taiwan should pay US for defence: ‘they took about 100% of our chip business’

Trump’s Democratic rival, President Joe Biden, earlier upset Beijing with comments that appeared to suggest the US would defend Taiwan

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US presidential nominee Donald Trump arrives for the second day of the Republican National Convention in Milwaukee on Tuesday. Photo: Reuters

Published: 11:02am, 17 Jul 2024Updated: 3:59pm, 17 Jul 2024

Taiwan should pay the United States for its defence as it does not give the country anything, US Republican presidential candidate Donald Trump said, sending shares of Taiwanese chip manufacturer TSMC lower on Wednesday.

“I know the people very well, respect them greatly. They did take about 100 per cent of our chip business. I think, Taiwan should pay us for defence,” Trump said in interview on June 25 that was published on Tuesday.

“You know, we’re no different than an insurance company. Taiwan doesn’t give us anything.”

The US is Taiwan’s most important international supporter and arms supplier, but there is no formal defence agreement. The US is however bound by law to provide Taiwan with the means to defend itself.

Taiwan has made defence modernisation a priority, including developing its own submarines, and has said many times the island’s security rests in its own hands.

The logo of Taiwan Semiconductor Manufacturing Company’s (TSMC) is seen at the opening of the chip maker’s global R&D centre in Hsinchu, Taiwan, last year. Photo: Reuters

Responding to Trump’s comments, Cho Jung-tai, Taiwan’s premier, said on Wednesday that the island was willing to take on more responsibility for defending itself and is steadily increasing defence spending.