Trump’s demand for higher defense spending in Taiwan meets resistance from pro-China forces

On August 21, 2025, Taiwan’s Premier Cho Jung-tai announced plans to increase defense spending for the following year to 3.32% of GDP—approximately $31 billion, a 22% increase.

According to him, Taiwan aims to align with the new NATO standard, incorporating expenditures on the coast guard and veteran support into this calculation.

Part of the additional funds will be allocated to purchasing military equipment. President William Lai further stated that Taiwan plans to reach 5% of GDP for defense by 2030.

This decision marked the first instance among Indo-Pacific democracies of complying with the Trump administration’s demand for increased defense budgets.