US President on Thursday (local time) announced tariffs of up to 100 per cent on imports of unmanned drones and their components to reduce the country’s reliance on imports in an industry largely dominated by China.
Trump admin imposes tariffs on drone imports: What we know
The White House said it would impose a 100 per cent on drones deemed particularly sensitive to national security, including those weighing more than 25kg or equipped with thermal imaging capabilities, while drones with a maximum take-off weight of 25kg will face a 25 per cent tariff.
While most of the new tariffs will come into effect 21 days after signing, tariffs on components that are not considered particularly sensitive will take effect 180 days after signing. Additionally, for products and components that the Department of War has approved for an exemption from the Federal Communications Commission’s Covered List within 20 days of signing, the tariffs will take effect 180 days after signing.
In a statement, the White House said the tariffs will “encourage increased domestic production” of drones and their components and reduce reliance on foreign supply chains.
Washington has also imposed a 15 per cent tariff on drones and their components imported from the , Japan, Liechtenstein, South Korea, Switzerland and Taiwan. Additionally, a 10 per cent tariff has been imposed on drones from the United Kingdom, provided that substantially all of their hardware, software and technology originate in the UK or the .
Why did Trump impose tariffs on drones?
The decision to levy tariffs on drones comes at a time when the Trump administration is intensifying its crackdown on technology, the Financial Times reported. Earlier in December last year, the Federal Communications Commission (FCC) announced a ban on imports of Chinese drones, stating that it would stop granting wireless communications approval to drones from adversary countries.
According to a Bloomberg report, Washington’s push to safeguard its domestic drone industry has gained further urgency as the war in has demonstrated the growing role of drones in modern combat. Their use by both Russia and Ukraine to defend and capture territory has also contributed to the emergence of a new form of hybrid warfare. In the proclamation, the US President described unmanned aircraft systems as “essential to the national and economic security” of the US.
The latest announcement could severely affect the Chinese drone market and is likely to increase pressure ahead of a planned crucial meeting between Trump and his Chinese counterpart, . Beijing is the dominant manufacturer of remote-controlled aerial vehicles globally, with Shenzhen-based DJI Technologies accounting for about 70 per cent of the US commercial drone market as of last year.
Commenting on Thursday’s move, Craig Singleton, an expert on US-China technology competition, told the Financial Times that the move was a “big deal” because it would reshape the commercial marketplace. Singleton added that US commercial and government buyers would need to make an immediate “capital-intensive pivot,” shifting to suppliers based in the US or allied nations even if their products come at a higher cost.
The development also comes a week after China announced restrictions on drone exports to the US and blacklisted six companies in response to trade sanctions imposed by Washington over forced labor and national security concerns.
(with agency inputs)
