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Tuesday, November 4, 2025

Taiwan Proposes Increase in Defense Budget to 3.32 Percent of GDP Following US Pressure

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Taiwan Proposes Increase in Defense Budget to 3.32 Percent of GDP Following US Pressure

Taiwanese Secretary-General of the National Security Council Joseph Wu (2nd L), President Lai Ching-te (C), and Minister of National Defense Wellington Koo (3rd R) pose with army officers in front of a U.S.-made Abrams tank in Hsinchu, Taiwan, on July 10, 2025. I-Hwa Cheng/AFP via Getty Images

Taiwan has proposed a 22.9 percent jump in its 2026 defense outlay in response to Chinese pressure and U.S. demands under President Donald Trump for higher defense spending.

The Executive Yuan—Taiwan’s executive branch of government—presented a draft on Aug. 21 outlining a top line of NT$949.5 billion (US$31.27 billion), equal to 3.32 percent of the forecast GDP.

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