Donald Trump plans to speak with Taiwan's president this week about a proposed $14 billion arms sale, a move that threatens to reignite US-China tensions and roil global markets from semiconductors to crypto. The call comes as Beijing has repeatedly warned against any official contact between Washington and Taipei, and the size of the deal — among the largest in years — is likely to escalate an already fragile trade and technology conflict.
The $14 billion arms deal
The package includes advanced fighter jets, missile systems, and naval defense equipment, according to people familiar with the planning. Trump's office confirmed the president intends to discuss the sale directly with Taiwan's leader, though no official date has been set. The arms transfer would mark a significant expansion of US military support to the island, which China claims as its own territory.
Why it rattles crypto
Heightened US-Taiwan ties could destabilize global supply chains, especially in semiconductors — a critical sector for crypto mining hardware and digital infrastructure. Any sharp escalation in rhetoric or sanctions would likely hit risk assets hard. Bitcoin and other cryptocurrencies have historically sold off during major geopolitical shocks, and traders are already bracing for volatility. The timing isn't great: markets are still digesting last month's trade tariff round.
Beijing's likely response
China's foreign ministry has already called the planned sale a violation of the One-China principle. Analysts expect retaliatory measures — possibly new sanctions on US defense firms, restrictions on rare-earth exports, or stepped-up military drills near Taiwan. Each of those moves could spill into financial markets, including crypto, as investors flee uncertainty.
What comes next
The White House has not said when the call will take place, but it's expected within the next 10 days. The Pentagon is reviewing final terms of the arms package. Taiwan's president has publicly welcomed the discussion. For now, the crypto market is watching for any concrete statements from Beijing — a single warning could trigger a selloff that lasts through the end of May.
