Trump says Taiwan should pay for U.S. defense

When former US President Trump was interviewed by US media, he specifically mentioned that Taiwan "should pay for US defense costs."

Trump made the above statement in an exclusive interview with Bloomberg Businessweek on June 25 this year. The report was published on Tuesday (July 16, 2024). In the interview, Trump said that he knew the Taiwanese very well and respected them very much, but they did take 100% of the chip business in the United States. Trump also said, "You know, we are no different from insurance companies. Taiwan has not given us anything."

After the report came out, TSMC ADR fell 1.3% after the market closed. The market opened lower on Wednesday, with a drop of more than 2% at one point. The Taiwan stock market fell by about 0.4%, highlighting that geopolitical risks will become a new variable that interferes with the Taiwan stock market due to Trump's change in his attitude towards protecting Taiwan.

It is understood that the United States is Taiwan's most important international supporter and arms supplier, but the two sides do not have a formal defense agreement.