Fri Feb 14 16:46:12 UTC 2025: ## Taiwan to Boost US Investment and Defense Spending Amid Trump’s Tariff Threats

**TAIPEI, Taiwan –** Taiwanese President Lai Ching-te announced Friday a plan to increase communication and investment in the United States following President Donald Trump’s imposition of reciprocal tariffs and criticism of Taiwan’s dominance in the semiconductor industry. Mr. Trump accused Taiwan of taking away US chip manufacturing jobs and demanded their return.

President Lai acknowledged Mr. Trump’s concerns, emphasizing the global semiconductor industry’s collaborative nature. He stated that Taiwan will strive for a mutually beneficial outcome, seeking to maintain its growth while addressing US interests. To this end, he proposed a “global semiconductor democratic supply chain partnership initiative” to build a more resilient and diversified supply chain, alongside increased communication with the US to highlight Taiwan’s importance in rebuilding US manufacturing.

Mr. Lai highlighted that over 40% of Taiwan’s overseas investments in the past two years have gone to the US, surpassing investments in China. Furthermore, he announced a proposed “special budget” to raise defense spending to over 3% of Taiwan’s GDP. These actions come in response to Mr. Trump’s protectionist trade measures, which threaten to escalate into a global trade war. While the US doesn’t officially recognize Taiwan, it remains its strongest backer and arms supplier, though the relationship has become increasingly complex under Mr. Trump’s administration.

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