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US-Taiwan ties get dose of stability as defense tensions linger

Feb 15, 2026, 5:20pm EST
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Taiwan’s President Lai Ching-te
Ann Wang/Reuters

The US and Taiwan inked a trade pact to slash tariffs and bolster semiconductor supply chains, as the island tries to step up its defense spending in the face of threats from China.

The agreement provides a “needed boost to the stability of US-Taiwan ties,” Politico wrote, as some China hawks in Washington fear the Trump administration is toning down its commitments to Taipei to avoid antagonizing Beijing, which sees Taiwan as a breakaway province it will eventually absorb.

Washington is pressuring the island to commit more to its own defense.

Taiwan’s leader, who is looking to pass a $40 billion special military budget, warned that a legislative deadlock over the funds could push Taipei down on the US’ priority list.

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