What We're Watching

Taiwan signals arms buildup in attempt to impress Trump

​Taiwan's then-Vice President William Lai at a news conference in Taipei, in January 2023.

Taiwan's then-Vice President William Lai at a news conference in Taipei, in January 2023.

Jameson Wu/EYEPRESS via Reuters
Taiwan’s leaders know that President-elect Donald Trump expects US allies to act as clients, not dependents. Why, Trump has frequently argued, should US taxpayers bankroll another country’s defense if its own government, and its neighboring allies, aren’t paying their fair share? For Taiwan’s government, that means making clear to Trump as early as possible that it intends to invest heavily in the country’s security.

Less than a week after Trump’s US election victory, Taiwanese officials have publicly floated a plan to spend billions on US-made weapons and weapons systems, including F-35 fighter jets, retired US warships, an airborne radar defense system, and hundreds of Patriot missiles. The goal is to persuade China that an invasion of the island would come at an unacceptably high military, material, and political cost for Beijing.

Trump is widely expected to again turn up the heat in US relations with China, particularly on trade issues, right after his inauguration in January. Officials in the government of Taiwanese President William Lai hope that Trump will find arms sales to their country useful as a way of maximizing pressure on Beijing. And even if US-China relations eventually improve, Taiwan will have already upgraded its defense capabilities.

More For You

Mastercard Economic Institute's Outlook 2026 explores the forces redefining global business. Tariffs, technology, and transformation define an adaptive economy for the year ahead. Expect moderate growth amid easing inflation, evolving fiscal policies, and rapid AI adoption, driving productivity. Digital transformation for SMEs and shifts in trade and consumer behavior will shape strategies worldwide. Stay ahead with insights to help navigate complexity and seize emerging opportunities. Learn more here.

Miami Mayor-elect Eileen Higgins points as she thanks her staff and supporters on the night of the general election, on Tuesday, Nov. 4, 2025.
Carl Juste/Miami Herald/TNS/ABACAPRESS.COM

A Democrat won Miami’s mayoral race for the first time in nearly 30 years. The Republican defeat will ring some alarms for the party – and their support among Latino voters.

Women work in the plastic container assembly area inside the El Oso shoe polish factory, located in Mexico City, Mexico, in its new facilities, after officers from the Secretariat of Citizen Security and staff from the Benito Juarez mayor's office arbitrarily and violently remove their supplies, raw materials, machinery, and work tools on January 17 of this year following a coordinated operation stemming from a private dispute. On August 27, 2025.
Photo by Gerardo Vieyra/NurPhoto

50: Mexico’s President Claudia Sheinbaum is taking a page out of US President Donald Trump’s book, implementing up to a 50% tariff on more than 1,400 products in a bid to boost domestic production.