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Trump blocks $400M military aid to Taiwan amid key trade talks with China
Published on January 3, 2026 at 6:30 amWritten by Brian Foster
© Trump blocks $400M military aid to Taiwan amid key trade talks with China
A single budget decision can ripple far beyond a line item—especially when it touches Taiwan, Beijing’s most sensitive geopolitical fault line. With trade and tech negotiations back on the table, Washington’s next move is being watched as closely in Taipei as it is in Beijing.
In a move that could reshape US–Taiwan relations, President Donald Trump has reportedly declined to approve more than $400 million in military aid for Taiwan¹, just days before crucial trade negotiations with Chinese President Xi Jinping. The decision, first revealed by senior administration officials, comes as Washington and Beijing attempt to strike a compromise on tariffs and a deal concerning the Chinese-owned social media giant TikTok.
According to White House sources, the hold on the aid is not yet final but signals a significant change in tone from previous US administrations. The United States, though it ended formal diplomatic recognition of Taiwan on Jan. 1, 1979², has long served as the island’s main defense partner and arms supplier. For Beijing, which considers Taiwan a breakaway province, such military assistance remains a red line.



