Trump holds back $400 million in Taiwan aid as China trade talks advance

Trump holds back $400 million Taiwan aid as China trade talks advance [https://invezz.com/wp-content/uploads/2025/09/20250919_1428_Diplomatic-Standoff_simple_compose_01k5gk0q9tftq8zrb4tvc41541.png] The United States’ approach to Taiwan has taken a new turn as President Donald Trump declined to sign off on a military aid package worth more than $400 million. The package, which included munitions and autonomous drones, was rejected earlier this summer. The decision has not yet been finalised, but it underscores how the Trump administration is weighing Taiwan’s security needs against its efforts to secure a trade agreement with China. The move comes just as Trump prepares for his first phone call with Chinese President Xi Jinping since June, signalling how military and trade considerations are increasingly being negotiated together. MILITARY PACKAGE ON HOLD Bloomberg reports, the $400 million military package was expected to reach Taiwan through the Presidential Drawdown Authority, the same mechanism previously used by the Biden administration. However, Trump’s team is leaning towards Taiwan paying directly for the weapons rather than receiving them as aid. Experts noted that the decision may be reversed, but the delay in approval highlights the administration’s preference for…