Taiwan plans defense hike to appease Trump amid China threats

Taiwan has proposed increasing defense spending next year in a bid to appease President Donald Trump, who has urged the island to take greater responsibility for defending itself against threats from China.

The government wants a military budget of NT$949.5 billion ($31.2 billion) for 2026, according to a statement from the cabinet in Taipei on Thursday.

Officials included money for the Coast Guard and veteran pensions in that topline figure for the first time. It represents a nearly 23% increase from the equivalent outlays last year, according to calculations by _Bloomberg News._

The cabinet said the proposal would raise defense spending to 3.32% of economic output—higher than a 3% target set in February.

MORE ON ISHARES MSCI TAIWAN ETF

* EWT: Taiwan Semiconductor Surging, Lifting The Taiwan ETF [https://seekingalpha.com/article/4803484-ewt-taiwan-semiconductor-surging-lifting-the-taiwan-etf]
* Taiwan unveils $510 billion push to become global AI leader [https://seekingalpha.com/news/4470338-taiwan-unveils-510-billion-push-to-become-global-ai-leader]
* China, Taiwan tensions heat up [https://seekingalpha.com/news/4462531-china-taiwan-tensions-heat-up]
* Seeking Alpha’s Quant Rating on iShares MSCI Taiwan ETF [https://seekingalpha.com/symbol/EWT/ratings/quant-ratings]
* Dividend scorecard for iShares MSCI Taiwan ETF [https://seekingalpha.com/symbol/EWT/dividends/scorecard]