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Trump Labels $14B Taiwan Arms Sale Negotiation Chip

5/16/2026

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Story summary
  • President Donald Trump called Taiwan arms sales a “good negotiating chip” in China talks.
  • He said $14 billion Taiwan arms package will be held pending China’s response.
  • Taiwan’s presidential office said policy remains unchanged and affirmed the island’s sovereignty.
  • Analysts warned that Trump’s urging Taiwanese chipmakers to shift production to U.S., citing Taiwan Semiconductor Manufacturing Company (TSMC)’s $165 billion Arizona investment, could raise Taiwan’s concerns as China warned of “clashes and conflicts”.