Former President Trump says Taiwan should pay for defense, sending TSMC stock down

Former President Trump and presumptive GOP nominee for U.S. President moments after narrowly surviving an assassination attempt on Saturday, July 13, 2024. (photo: Evan Vucci/AP)

Taiwan should pay the U.S. for its defense, former U.S. President and Republican presidential candidate Donald Trump told Bloomberg Businessweek in a story published Tuesday, sending shares of major Apple supplier Taiwanese chip manufacturer TSMC lower on Wednesday.

Reuters:
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“I know the people very well, respect them greatly. They did take about 100% of our chip business. I think, Taiwan should pay us for defense,” Trump said in interview on June 25 that was published on Tuesday. “You know, we’re no different than an insurance company. Taiwan doesn’t give us anything.”

The United States is Taiwan’s most important international supporter and arms supplier, but they have no formal defense agreement, unlike what Washington has with South Korea and Japan. The U.S. is, however, bound by law to provide Taiwan with the means to defend itself.

Taiwan Premier Cho Jung-tai, responding to Trump’s comments, said Taiwan and the U.S. have good relations despite the lack of formal ties, and is dedicated to bolstering its own defenses.

Taiwan, which China views as its own territory, has complained of repeated Chinese military activity over the past four years as Beijing seeks to pressure the democratically governed island which rejects China’s sovereignty claims…

Washington and Taipei have had no official diplomatic or military relationship since 1979, when the U.S. switched recognition to Beijing and terminated a mutual defense treaty.

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MacDailyNews Note: TSMC, the world’s largest contract chipmaker and a major Apple supplier, closed down 2.4% on Wednesday.
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