Taiwan Proposes Increase in Defense Budget to 3.32 Percent of GDP Following US Pressure

The 2026 increase aims to strengthen Taiwan’s deterrence against China while signaling commitment to U.S. security expectations

Taiwanese Secretary-General of the National Security Council Joseph Wu (2nd L), President Lai Ching-te (C), and Minister of National Defense Wellington Koo (3rd R) pose with army officers in front of a U.S.-made Abrams tank in Hsinchu, Taiwan, on July 10, 2025. I-Hwa Cheng/AFP via Getty Images

Taiwan has proposed a 22.9 percent jump in its 2026 defense outlay in response to Chinese pressure and U.S. demands under President Donald Trump for higher defense spending.

The Executive Yuan—Taiwan’s executive branch of government—presented a draft on Aug. 21 outlining a top line of NT$949.5 billion (US$31.27 billion), equal to 3.32 percent of the forecast GDP.