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Trump imposes up to 100% tariff on drones

US President Donald Trump has signed a proclamation imposing tariffs of up to 100% on imported drones and specific drone components, citing national security risks and the need to boost domestic manufacturing. The new tariff regime targets large and thermal-imaging drones heavily, while lower duties apply to smaller drones and less sensitive components. The White House stated that the 100% ad valorem tariff applies to drones with a maximum takeoff weight of more than 25 kg, as well as drones with thermal imaging capabilities, their docking stations, and certain critical components. For smaller drones that lack capabilities considered particularly sensitive to national security, the proclamation imposes a 25% ad valorem tariff. This lower rate also applies to other drone components that are not deemed critical for national security purposes. The administration has structured the tariffs to favor specific allies, provided that the hardware, software, and technology originate from within those countries and the United States. Drones and components from the European Union, Japan, Liechtenstein, the Republic of Korea, Switzerland, and Taiwan will attract a reduced tariff rate of 15%. The United Kingdom will face an even lower tariff rate of 10%, contingent upon the same origin requirements for hardware and software. The new tariffs will take effect 21 days after the proclamation was signed. However, tariffs on non-sensitive drone components will take effect after a longer window of 180 days. Products and components approved by the Department of War for exemption from the Federal Communications Commission's Covered List within 20 days of signing will also face tariffs after the 180-day period. The proclamation authorizes the Commerce Secretary to establish an onshoring programme for companies making new investments in US drone and component manufacturing. The administration highlighted that commercial and military drones rely heavily on foreign sources for critical Unmanned Aircraft System (UAS) components, creating significant risks to US national security and cybersecurity vulnerabilities.

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Trump imposes up to 100% tariff on drones

According to Fortune India, US President Donald Trump has signed a proclamation imposing tariffs of up to 100% on imported drones and specific drone components, citing national security risks and the need to boost domestic manufacturing.

Tariff Breakdown by Drone Size and Capability

The new tariff regime targets large and thermal-imaging drones heavily, while lower duties apply to smaller drones and less sensitive components. The White House stated that the 100% ad valorem tariff applies to drones with a maximum takeoff weight of more than 25 kg, as well as drones with thermal imaging capabilities, their docking stations, and certain critical components.

For smaller drones that lack capabilities considered particularly sensitive to national security, the proclamation imposes a 25% ad valorem tariff. This lower rate also applies to other drone components that are not deemed critical for national security purposes.

Exemptions for Key Trading Partners

The administration has structured the tariffs to favor specific allies, provided that the hardware, software, and technology originate from within those countries and the United States. Drones and components from the European Union, Japan, Liechtenstein, the Republic of Korea, Switzerland, and Taiwan will attract a reduced tariff rate of 15%.

The United Kingdom will face an even lower tariff rate of 10%, contingent upon the same origin requirements for hardware and software. This tiered approach aims to protect US industries while maintaining strong trade relationships with key security partners.

Implementation Timeline and Exemptions

The White House announced that the new tariffs will take effect 21 days after the proclamation was signed. However, tariffs on non-sensitive drone components will take effect after a longer window of 180 days.

Products and components approved by the Department of War for exemption from the Federal Communications Commission’s Covered List within 20 days of signing will also face tariffs after the 180-day period. This timeline allows companies to adjust their supply chains and seek necessary exemptions.

Focus on Domestic Manufacturing and National Security

The proclamation authorizes the Commerce Secretary to establish an onshoring programme for companies making new investments in US drone and component manufacturing. The White House emphasized that drones are a key technology in modern armed conflict and critical for present and future US military operations.

The administration highlighted that commercial and military drones rely heavily on foreign sources for critical Unmanned Aircraft System (UAS) components, creating significant risks to US national security and cybersecurity vulnerabilities. The move builds on Trump’s broader use of Section 232 tariffs to protect industries considered critical to US national security, including steel, aluminum, copper, trucks, automobiles, timber, lumber, and pharmaceuticals.

The administration stated that US drone production needs to be expanded rapidly to strengthen national and economic security and support jobs in the country’s defense and defense-adjacent industrial base.

Source: fortuneindia.com

Compiled from international media by the SCI.AI editorial team.

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