Taiwan-US trade agreement: Defense goals did not require trade deal proviso: LaiBy Chen Cheng-yu / Staff reporterPresident William Lai (賴清德) yesterday said his decision to allocate more than 3 percent of GDP for defense was made before the US announcement of tariffs and is unrelated to the Taiwan-US Agreement on Reciprocal Trade signed Thursday. Lai made the remarks at a news conference in response to media queries about the provision in the agreement that specifies Taiwan’s annual defense budget should exceed 3 percent of GDP. Lai said that since being elected president, he has publicly committed to strengthening Taiwan’s defense capabilities to demonstrate the country’s resolve in safeguarding national security and maintaining peace and stability in the Indo-Pacific Region. Lai said that Taiwan’s defense budget for this year has already surpassed 3 percent of GDP. “Whether it’s TSMC or other industries, as long as their R&D centers are in Taiwan, their advanced manufacturing processes are in Taiwan and their largest production volume is in Taiwan, Taiwan can continue to develop steadily,” Lai said.

Source: Taipei Times February 13, 2026 17:17 UTC