On Thursday, acting Navy Secretary Hung Cao said that the Donald Trump administration has paused a proposed $14 billion arms sale to Taiwan as the Pentagon reviews U.S. weapons stockpiles amid the ongoing conflict with Iran.
US Pauses Taiwan Arms Sale Over Munitions Concerns
Speaking during a Senate Appropriations Defense Subcommittee hearing, Cao said the administration wants to ensure the U.S. military retains sufficient munitions for its operational needs before proceeding with foreign military sales.
"Right now we're doing a pause in order to make sure we have the munitions we need for Epic Fury — which we have plenty," Cao told lawmakers. "We're just making sure we have everything, but then the foreign military sales will continue when the administration deems necessary."
US Weapons Stockpile Concerns Grow Amid Iran Conflict
Cao's remarks come as questions intensify over the state of U.S. missile inventories following months of military operations tied to the Iran conflict.
Reports suggest the U.S. has used significant numbers of Tomahawk cruise missiles, Patriot interceptors and other advanced precision weapons since fighting began earlier this year.
The White House is reportedly preparing a supplemental funding request of up to $100 billion to replenish weapons stockpiles and support ongoing operations.
Defense Secretary Pete Hegseth has pushed back against concerns that U.S. inventories are running dangerously low.
"First of all, the munitions issue has been foolishly and unhelpfully overstated," Hegseth told House appropriators last week. "We know exactly what we have. We have plenty of what we need."
Late in the day, Oil prices rose 1.77% to $98.06 as of 9:41 p.m. EDT, while Brent crude gained 2.26% to $104.90 as of 2:41 a.m. BST; meanwhile, natural gas fell 0.83% to $2.993 as of 9:38 p.m. EDT.
Trump Signals Taiwan Arms Sale Could Be Negotiating Tool With China
Cao's explanation appeared to differ from comments made by Trump, who suggested the Taiwan arms package could be tied to broader discussions with China.
Taiwan plays a critical role in global technology supply chains, producing roughly 90% of the world's advanced semiconductor chips through Taiwan Semiconductor Manufacturing Company (NYSE:TSM).
The island is strategically important to major U.S. tech companies such as Apple Inc. (NASDAQ:AAPL) and Nvidia Corp (NASDAQ:NVDA), which rely heavily on Taiwan's chip manufacturing capabilities.
Beyond semiconductors, the Taiwan Strait serves as one of the world's most critical shipping routes, handling an estimated $2.45 trillion worth of goods in 2022 — more than 20% of global maritime trade, according to the Center for Strategic and International Studies.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: Tomasz Makowski on Shutterstock.com
Login to comment