Why Donald Trump’s win could mean a defence budget nightmare for Taiwan

US president-elect Donald Trump has made Taiwan a central focus of his 2024 campaign, advocating for increased defence spending by the island and criticizing its semiconductor dominance. Despite Taiwanese officials dismissing these statements as campaign rhetoric, Trump’s calls for Taiwan to pay “protection fees” and boost defence spending to 10 per cent of GDP are putting real pressure on the island. This has raised urgent concerns about Taiwan’s ability to meet these demands and secure US military support amid growing threats from the People’s Liberation Army (PLA).

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