After taking office in January, Trump will likely apply pressure on Taiwan to increase its defense budget. Trump once again plans to use tariffs to solve the “Taiwan problem.” Whether that would be enough to deter China from threatening Taiwan is unclear. As such, Trump could press Taiwan to buy more US products or ease restrictions to reduce the trade deficit. He could demand that Taiwan pay a “protection fee” to the US to increase defense spending and demonstrate its resolve for self-defense — a proposition that would be difficult for Taiwan to refuse. For example, Taiwan Semiconductor Manufacturing Co could build more plants on US soil to strengthen economic ties and high-tech connections.
