Trump calls $14 billion Taiwan arms deal a 'negotiating chip' with China after Xi said Taiwan issue could lead to 'clashes and even conflicts' — Trump says 'Taiwan would be very smart to cool it a little bit'
Former President Donald Trump referred to a $14 billion U.S. arms sale to Taiwan as a 'negotiating chip' with China, stating it was being held in abeyance amid high-level talks with President Xi Jinping. Xi warned that the Taiwan issue could lead to 'clashes and even conflicts,' emphasizing its importance in U.S.-China relations. Trump suggested Taiwan should 'cool it a little bit,' drawing criticism from bipartisan U.S. lawmakers who argue Taiwan's defense should not be used as leverage.
- ▪The $14 billion arms package includes PAC-3 MSE interceptors and NASAMS air defense missiles intended to help Taiwan deter Chinese aggression.
- ▪Chinese President Xi Jinping told Trump that the Taiwan issue is 'the most important issue' in bilateral relations and could result in 'clashes and even conflicts.'
- ▪Taiwan produces over 90% of the world's most advanced semiconductors through TSMC, a concentration that forms the basis of its 'silicon shield' defense strategy.
- ▪U.S. Secretary of State Marco Rubio stated that American policy toward Taiwan remains unchanged and that any Chinese attempt to take the island by force would be 'a terrible mistake.'
- ▪A bipartisan group of U.S. senators urged Trump not to treat Taiwan's defense as a bargaining tool, asserting that U.S. support for the island 'is not up for negotiation.'
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Tech Industry Manufacturing Semiconductors Trump calls $14 billion Taiwan arms deal a 'negotiating chip' with China after Xi said Taiwan issue could lead to 'clashes and even conflicts' — Trump says 'Taiwan would be very smart to cool it a little bit' News By Luke James published 16 May 2026 A $14 billion arms sale includes air defense systems that Taiwan says it needs to deter a Chinese attack. When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works.
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