President Donald Trump has rejected a proposed $400 million military aid package for Taiwan this summer, opting instead for future arms sales as he pursues a trade deal and potential summit with Chinese leader Xi Jinping.

The decision, which could still be reversed, involves lethal capabilities like munitions and autonomous drones—deemed more advanced than prior Biden-era shipments—under the Presidential Drawdown Authority (PDA), allowing rapid transfers from U.S. stockpiles.

A White House official noted the package remains unfinalized, but insiders described it as a concession to ease negotiations, prioritizing Taipei's purchases over grants.

Trump has long advocated a "transactional" approach, echoing his Ukraine policy where European buys fund donations. Taiwan's Foreign Ministry welcomed ongoing U.S. security ties, affirming its resolve to bolster defenses to 5% of GDP by 2030—up from 3.3% next year—while cooperating with allies to deter aggression.

The island, facing China's 2027 unification deadline per PLA directives, awaits billions in delayed arms like F-16s and Harpoons, with a new $500 million sales notification to Congress this week focusing on asymmetric tools such as drones and missiles.

The White House views Taiwan's prosperous economy as capable of self-funding, akin to European models, contrasting Biden's $2 billion in PDA packages.