Published by Global Banking & Finance Review®
Posted on February 17, 2025
3 min readLast updated: January 26, 2026
Taiwan is negotiating a multi-billion dollar arms deal with the US to enhance its defense capabilities amid rising tensions with China.
By Michael Martina, Yimou Lee and Ben Blanchard
WASHINGTON/TAIPEI (Reuters) - Taiwan is exploring buying arms worth billions of dollars from the United States, sources briefed on the matter said, hoping to win support from the new Trump administration as China continues to apply military pressure on the island.
Three sources familiar with the situation, speaking to Reuters on condition of anonymity given the sensitivity of the situation, told Reuters that Taiwan is in talks with Washington.
The package is meant to demonstrate to the United States that Taiwan is committed to its defense, one of the sources said.
A second source said the package would include coastal defense cruise missiles and HIMARS rockets.
"I would be very surprised if it was less than $8 billion. Somewhere between $7 billion to $10 billion," the source added.
The White House did not immediately respond to a request for comment. However, U.S. national security adviser Mike Waltz has said he wants to speed delivery of weapons to Taiwan.
Taiwan's defense ministry declined to comment on specific purchases but said it is focused on building its defenses.
"Any weaponry and equipment that can achieve those goals for building the military are listed as targets for tender," it said.
China claims democratically governed Taiwan as its own territory and has never renounced the use of force to bring the island under its control. Taiwan strongly objects to China’s sovereignty claims and says only the island’s people can decide their future.
TRUMP-TAIWAN RELATIONS
U.S. President Donald Trump unnerved chip powerhouse Taiwan on the election campaign trail by saying the island stole American semiconductor business. This month, he threatened tariffs on chip imports.
But his administration maintained diplomatic support for the Chinese-claimed island.
Trump and Japanese Prime Minister Shigeru Ishiba issued a joint statement on February 7 opposing any attempt to change the current situation in the Taiwan Strait through force or coercion. The U.S. State Department also removed language on its website that it does not support Taiwan independence, a move praised by the island's government. China has urged the U.S. to "correct its mistakes".
Taiwan plans to propose a special defense budget that prioritizes precision ammunition, air-defense upgrades, command and control systems, equipment for the reserve forces and anti-drone technology, a third source familiar with the matter said.
During his 2017-2021 term, Trump established regular arms sales to Taiwan, including multi-billion dollar deals for F-16 fighter jets. The Biden administration continued these sales, though often with smaller price tags.
Taiwanese officials see encouraging signs from Trump's administration even as tariff threats weigh on that optimism.
Taiwan does not believe Trump is looking to make a "grand bargain" with Chinese President Xi Jinping to sell out Taiwan's interests, one of the sources said. Trump is more concerned with putting tariffs on semiconductors, the source said.
In another sign of U.S. commitment to Taiwan, the top U.S. diplomat in Taiwan, Raymond Greene, will retain his post, three sources told Reuters, even as other U.S. diplomatic postings undergo major reshuffles.
The U.S. State Department did not immediately respond to a question about Greene's job status.
(Reporting by Michael Martina in Washington and Ben Blanchard and Yimou Lee in Taipei; Additional reporting by Trevor Hunnicutt in Washington. Editing by Don Durfee and Lisa Shumaker)
The main topic is Taiwan's consideration of a multi-billion dollar arms purchase from the US to strengthen its defense against China.
The potential arms package may include coastal defense cruise missiles and HIMARS rockets.
China opposes the US-Taiwan military cooperation and has urged the US to correct its mistakes.
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