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Trump’s transactional diplomacy is reshaping the U.S.-Taiwan relationship

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Trump’s transactional diplomacy is reshaping the U.S.-Taiwan relationship

For decades, the U.S. has played an important role in maintaining the delicate relationship between Taiwan and China, which considers Taiwan to be a part of its territory and has vowed to pursue unification by force, if necessary. But President Trump’s “America First” ideology and use of tariffs as an economic weapon suggest the administration may be rewriting the rules of the U.S.-China-Taiwan playbook to suit his transactional style.

As is true in much of the world, long-held understandings, meant to preserve peace, are suddenly up for negotiation. Although the U.S. does not recognize Taiwan as an independent nation, it has been contractually obligated to support the island’s defense program with weapons sales for years. It’s part of an official policy known as “strategic ambiguity,” intended to deter China from launching an attack and Taiwan from formally declaring independence.

Trump has not said whether the U.S. will defend Taiwan in the future, but he has complained about the relationship, and his administration has said that Taiwan should raise its defense budget to 10% of its gross domestic product.

Taiwanese President William Lai, right, listens to a briefing about a U.S.-made F-16V fighter during a visit to a military base on Jan. 21.

(Chiang Ying-ying / Associated Press)

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Trump has also criticized Taiwan’s cutting-edge semiconductor industry for “stealing” U.S. business and threatened tariffs on Taiwanese chips. Then, on March 3, he announced a $100-billion investment from Taiwan Semiconductor Manufacturing Co., or TSMC, maker of the world’s most advanced microchips, to build five new facilities in the United States. The move has some people in Taiwan wondering how much the island democracy can count on the U.S., and what the U.S. might expect in return.

Chieh-ting Yeh, director of the think tank US Taiwan Watch, said that since Trump took office, his conversations have shifted from a focus on shared values such as democracy and human rights to bargaining ability.

“Privately everybody is thinking, ‘OK, if it’s going to be a transactional type of relationship, how do we play that game?’” Yeh said. “In the short term, I just don’t think anybody can say for sure what’s going to happen.”

The news about TSMC, which has a reputation as Taiwan’s “silicon shield,” has sparked heated debate over whether the company’s plan to build in the United States could undermine national security.

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Former Taiwanese President Ma Ying-jeou attacked current President William Lai for supporting the deal: “Let’s not forget, U.S. President Donald Trump is a businessman, and profit comes first to him. Is selling one TSMC enough? What else will be sold next, and what more is left to sell?” Ma wrote in a Facebook post that garnered more than 70,000 likes.

In a news conference last week with TSMC Chairman C.C. Wei, Lai denied that the investment was a result of U.S. pressure and noted that Trump had affirmed his commitment to regional stability in a joint statement with Japanese Prime Minister Shigeru Ishiba in February.

Lai has also said Taiwan will aim to increase defense spending to 3% of GDP this year from about 2.4% the year before. While that figure falls far short of what the Trump administration has called for, experts in Taiwan said increasing the budget to 10% of GDP would be impossible.

In the meantime, Taiwan’s opposition-backed legislature wants to cut defense spending, criticizing the current administration for wasteful spending, corruption and a combative approach to China that it believes is driving the island closer to war.

President Donald Trump and Ukraine's President Volodymyr Zelensky meet in the White House February 28, 2025.

President Trump castigated Ukraine’s President Volodymyr Zelensky in a meeting at the White House on Feb. 28. In Taiwan, fears of U.S. abandonment have been underscored by the U.S. about-face under Trump on the war in Ukraine.

(Saul Loeb / AFP/Getty Images)

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“Taiwan is taking it with a grain of salt. I think there’s an understanding that nice, big, round numbers create bargaining positions, but may not be the final numbers that are agreed on,” said Wen-ti Sung, a political scientist at Australia National University who specializes in cross-strait relations.

Fears of American abandonment have been underscored by the U.S. about-face under Trump on the war in Ukraine, which Taiwan has watched closely as a barometer of U.S. reliability. “Values as well as longer-standing friendships are not by themselves sufficient safeguards for maintaining U.S. support,” Sung said.

Since taking office, Trump has called Ukrainian President Volodymyr Zelensky a “dictator” and suspended — and then agreed to resume — U.S. military aid to Ukraine. When a meeting between the two leaders, intended to sign a deal granting the U.S. a stake in Ukrainian minerals in exchange for continued financial support, dissolved into shouting, some in Taiwan took it as a worrisome sign.

The slogan of “Today Ukraine, Tomorrow Taiwan,” popularized by the ruling party after Russia invaded Ukraine in 2022, resurfaced on social media in Taiwan after the fallout. One user on Threads commented under a post about Zelensky, “Taiwan needs to follow America’s lead, since we can only rely on them for military support.” Another responded, “Haven’t you seen what happened to Ukraine? Do you still think the U.S. is reliable?”

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Others have speculated that if America turns away from Ukraine and Europe, there could be more resources and willingness to support its allies in Asia and counter China: “Comparing Ukraine to Taiwan is a completely flawed analogy,” James Hsieh, a Taiwanese political commentator, wrote on social media. “Personally, I hope the Russia-Ukraine war ends quickly so that the U.S. can fully prepare for the Indo-Pacific.”

Ukrainians and supporters in Taiwan protest against Russia's invasion.

Ukrainians and their supporters hold signs in Taipei, Taiwan, as they protest Russia’s invasion.

(Chiang Ying-ying / Associated Press)

Elbridge Colby, Trump’s nominee to be undersecretary of Defense for policy, recently reiterated the call for Taiwan to increase its defense spending in a confirmation hearing. But he also said that the U.S. should focus on combating China’s growing military influence, and that losing Taiwan to China “would be a disaster for American interests.”

“What can Taiwan learn from this?” asked William Chih-tung Chung, an assistant research fellow at Taiwan’s Institute for National Defense and Security Research. “First, don’t clash with Trump directly. Second, delay and wait for change. In the meantime, we just have to engage with him and negotiate.”

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Chung points out that this isn’t the first time Taiwan has faced losing U.S. support. In 1979, the U.S. severed diplomatic ties with Taiwan as it pursued a closer relationship with China.

But the deterioration of U.S.-China relations in the last decade has enhanced the importance of Taiwan, which he believes will continue to play an important role as a defensive stronghold in the Asia-Pacific region and a leader in chip technology, a role that cannot be erased in the next four years.

“As long as the U.S. maintains a negative stance toward China, Taiwan remains a crucial bargaining chip for the U.S.,” Chung said. “Of course there’s a lot of uncertainty with Trump, and everyone is anxiously waiting. But I think there’s no need to be overly pessimistic or overly optimistic — what matters is that we find a strong connection with the Trump administration’s global strategy.”

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Video: Fed Chair Responds to Inquiry on Building Renovations

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Video: Fed Chair Responds to Inquiry on Building Renovations

new video loaded: Fed Chair Responds to Inquiry on Building Renovations

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Fed Chair Responds to Inquiry on Building Renovations

Federal prosecutors opened an investigation into whether Jerome H. Powell, the Federal Reserve chair, lied to Congress about the scope of renovations of the central bank’s buildings. He called the probe “unprecedented” in a rare video message.

“Good evening. This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings. This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions, or whether instead, monetary policy will be directed by political pressure or intimidation.” “Well, thank you very much. We’re looking at the construction. Thank you.”

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Federal prosecutors opened an investigation into whether Jerome H. Powell, the Federal Reserve chair, lied to Congress about the scope of renovations of the central bank’s buildings. He called the probe “unprecedented” in a rare video message.

By Nailah Morgan

January 12, 2026

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San Antonio ends its abortion travel fund after new state law, legal action

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San Antonio ends its abortion travel fund after new state law, legal action

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San Antonio has shut down its out-of-state abortion travel fund after a new Texas law that prohibits the use of public funds to cover abortions and a lawsuit from the state challenging the city’s fund.

City Council members last year approved $100,000 for its Reproductive Justice Fund to support abortion-related travel, prompting Texas Attorney General Ken Paxton to sue over allegations that the city was “transparently attempting to undermine and subvert Texas law and public policy.”

Paxton claimed victory in the lawsuit on Friday after the case was dismissed without a finding for either side.

WYOMING SUPREME COURT RULES LAWS RESTRICTING ABORTION VIOLATE STATE CONSTITUTION

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Texas Attorney General Ken Paxton claimed victory in the lawsuit after the case was dismissed without a finding for either side. (Hannah Beier/Bloomberg via Getty Images)

“Texas respects the sanctity of unborn life, and I will always do everything in my power to prevent radicals from manipulating the system to murder innocent babies,” Paxton said in a statement. “It is illegal for cities to fund abortion tourism with taxpayer funds. San Antonio’s unlawful attempt to cover the travel and other expenses for out-of-state abortions has now officially been defeated.”

But San Antonio’s city attorney argued that the city did nothing wrong and pushed back on Paxton’s claim that the state won the lawsuit.

“This litigation was both initiated and abandoned by the State of Texas,” the San Antonio city attorney’s office said in a statement to The Texas Tribune. “In other words, the City did not drop any claims; the State of Texas, through the Texas Office of the Attorney General, dropped its claims.”

Texas Attorney General Ken Paxton said he will continue opposing the use of public funds for abortion-related travel. (Justin Lane/Reuters)

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Paxton’s lawsuit argued that the travel fund violates the gift clause of the Texas Constitution. The state’s 15th Court of Appeals sided with Paxton and granted a temporary injunction in June to block the city from disbursing the fund while the case moved forward.

Gov. Greg Abbott in August signed into law Senate Bill 33, which bans the use of public money to fund “logistical support” for abortion. The law also allows Texas residents to file a civil suit if they believe a city violated the law.

“The City believed the law, prior to the passage of SB 33, allowed the uses of the fund for out-of-state abortion travel that were discussed publicly,” the city attorney’s office said in its statement. “After SB 33 became law and no longer allowed those uses, the City did not proceed with the procurement of those specific uses—consistent with its intent all along that it would follow the law.”

TRUMP URGES GOP TO BE ‘FLEXIBLE’ ON HYDE AMENDMENT, IGNITING BACKLASH FROM PRO-LIFE ALLIES

Texas Gov. Greg Abbott signed a law in August that blocks cities from using public money to help cover travel or other costs related to abortion. (Antranik Tavitian/Reuters)

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The broader Reproductive Justice Fund remains, but it is restricted to non-abortion services such as home pregnancy tests, emergency contraception and STI testing.

The city of Austin also shut down its abortion travel fund after the law was signed. Austin had allocated $400,000 to its Reproductive Healthcare Logistics Fund in 2024 to help women traveling to other states for an abortion with funding for travel, food and lodging.

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California Atty. Gen. Rob Bonta opts against running for governor. Again.

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California Atty. Gen. Rob Bonta opts against running for governor. Again.

California Atty. Gen. Rob Bonta announced Sunday that he would not run for California governor, a decision grounded in his belief that his legal efforts combating the Trump administration as the state’s top prosecutor are paramount at this moment in history.

“Watching this dystopian horror come to life has reaffirmed something I feel in every fiber of my being: in this moment, my place is here — shielding Californians from the most brazen attacks on our rights and our families,” Bonta said in a statement. “My vision for the California Department of Justice is that we remain the nation’s largest and most powerful check on power.”

Bonta said that President Trump’s blocking of welfare funds to California and the fatal shooting of a Minnesota mother of three last week by a federal immigration agent cemented his decision to seek reelection to his current post, according to Politico, which first reported that Bonta would not run for governor.

Bonta, 53, a former state lawmaker and a close political ally to Gov. Gavin Newsom, has served as the state’s top law enforcement official since Newsom appointed him to the position in 2021. In the last year, his office has sued the Trump administration more than 50 times — a track record that would probably have served him well had he decided to run in a state where Trump has lost three times and has sky-high disapproval ratings.

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Bonta in 2024 said that he was considering running. Then in February he announced he had ruled it out and was focused instead on doing the job of attorney general, which he considers especially important under the Trump administration. Then, both former Vice President Kamala Harris and Sen. Alex Padilla (D-Calif.) announced they would not run for governor, and Bonta began reconsidering, he said.

“I had two horses in the governor’s race already,” Bonta told The Times in November. “They decided not to get involved in the end. … The race is fundamentally different today, right?”

The race for California governor remains wide open. Newsom is serving the final year of his second term and is barred from running again because of term limits. Newsom has said he is considering a run for president in 2028.

Former Rep. Katie Porter — an early leader in polls — late last year faltered after videos emerged of her screaming at an aide and berating a reporter. The videos contributed to her dropping behind Riverside County Sheriff Chad Bianco, a Republican, in a November poll released by the UC Berkeley Institute of Governmental Studies and co-sponsored by The Times.

Porter rebounded a bit toward the end of the year, a poll by the Public Policy Institute of California showed, however none of the candidates has secured a majority of support and many voters remain undecided.

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California hasn’t elected a Republican governor since 2006, Democrats heavily outnumber Republicans in the state, and many are seething with anger over Trump and looking for Democratic candidates willing to fight back against the current administration.

Bonta has faced questions in recent months about spending about $468,000 in campaign funds on legal advice last year as he spoke to federal investigators about alleged corruption involving former Oakland Mayor Sheng Thao, who was charged in an alleged bribery scheme involving local businessmen David Trung Duong and Andy Hung Duong. All three have pleaded not guilty.

According to his political consultant Dan Newman, Bonta — who had received campaign donations from the Duong family — was approached by investigators because he was initially viewed as a “possible victim” in the alleged scheme, though that was later ruled out. Bonta has since returned $155,000 in campaign contributions from the Duong family, according to news reports.

Bonta is the son of civil rights activists Warren Bonta, a white native Californian, and Cynthia Bonta, a native of the Philippines who immigrated to the U.S. on a scholarship in 1965. Bonta, a U.S. citizen, was born in Quezon City, Philippines, in 1972, when his parents were working there as missionaries, and immigrated with his family to California as an infant.

In 2012, Bonta was elected to represent Oakland, Alameda and San Leandro as the first Filipino American to serve in California’s Legislature. In Sacramento, he pursued a string of criminal justice reforms and developed a record as one of the body’s most liberal members.

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Bonta is married to Assemblywoman Mia Bonta (D-Alameda), who succeeded him in the state Assembly, and the couple have three children.

Times staff writer Dakota Smith contributed to this report.

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