Taiwan plans defense hike to appease Trump amid China threats

• Taiwan plans to increase its defense budget to NT$949.5 billion (approximately $31.2 billion) for 2026, in response to U.S. calls for greater self-defense against potential threats from China.

• The new budget includes funding for the Coast Guard and veteran pensions for the first time, representing a nearly 23% increase over the previous year's expenditures.

• This proposal would raise Taiwan's defense spending to 3.32% of its economic output, exceeding the earlier target of 3%, indicating a significant commitment to strengthening its military capabilities amid regional tensions.

Defense Spending Proposal Upgrade: Strengthening Taiwan's Military

Taiwan is set to increase its defense budget next year as a response to President Donald Trump's call for the island to assume greater responsibility in safeguarding itself from potential threats posed by China. The Taiwanese government has proposed a military budget of NT$949.5 billion (approximately $31.2 billion) for the year 2026, as outlined in a recent statement from the cabinet in Taipei.

This new budget allocation is notable as it marks the inclusion of funding for the Coast Guard and veteran pensions for the first time in the overall defense budget. The proposed figure represents a substantial increase of nearly 23% compared to similar expenditures from the previous year, as calculated by Bloomberg News.

The cabinet officials emphasize that this proposed budget increase would elevate defense spending to 3.32% of Taiwan's economic output, surpassing the previously established target of 3% announced in February. This adjustment is a significant step in reinforcing Taiwan's military capabilities amidst ongoing tensions in the region.