Trump’s foreign aid freeze sounds security alarm in Taiwan amid cross-strait tension

The US foreign aid freeze ordered by the Trump administration has raised alarm in Taiwan, with analysts warning that the move could broadly weaken the island’s defence and security at a time of growing military pressure from Beijing.

Beyond military implications, the freeze could force Taiwan’s Democratic Progressive Party (DPP) government to recalibrate its approach to both Washington and Beijing, as reduced US support may create an opening for Beijing to expand its influence, according to analysts.

On January 24, the US State Department issued a “stop work” order freezing nearly all foreign assistance for 90 days to review its alignment with US President Donald Trump’s foreign policy. It exempts only emergency food aid and foreign military financing for Israel and Egypt, without mentioning key US security partners such as Ukraine or Taiwan.

Although Taiwan has not received direct US foreign aid since Washington switched its diplomatic recognition to Beijing in 1979, military support has grown in recent years. Under former president Joe Biden, the US approved a landmark US$345 million military aid package in 2023, followed by a further US$571 million package last year, providing Taiwan with free weapons, training and services.

Congress also authorised up to US$10 billion in no-interest loans for Taiwan until 2027.

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US military aid to Taiwan remains smaller than that of other allies but Trump’s freeze has heightened concern in Taipei, particularly after his administration moved to halt the operation of the US Agency for International Development (USAID).

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