In a bid to bring down the dominance of Chinese chips in the global market, the Trump administration has rolled out steep new tariffs on imported drones and drone parts. The tariffs, which come into effect this week, can run as high as 100% on certain drones and components, with Washington framing the move as a bid to reduce its dependence on foreign suppliers in a sector it considers strategically vital, a news media report said on Thursday.
As per the report, the tariffs stem from a proclamation that U.S. President Donald Trump signed last month, with the White House calling drone imports a national security risk and pledging to strengthen America’s domestic manufacturing base in the process.
Larger and more sophisticated drones will attract the heaviest duties. Drones weighing more than 25 kg at takeoff or fitted with thermal imaging technology, along with their docking stations and related critical parts, have been flagged as the greatest threats to the country’s security.
Lighter and less sophisticated drones and other component parts will attract a 25% tariff.
However, a group of drone suppliers to the U.S. will be excluded from the highest tariffs. Drones and their parts from the European Union, Japan, Liechtenstein, South Korea, Switzerland and Taiwan will face only a 15% levy, while UK-made drones will be taxed at 10%, as long as their hardware, software and underlying technology are originally made within those countries or the U.S. itself.
The tariffs will be applicable three weeks after the law is signed. Two less-sensitive components will get a longer runway, with duties on those items not applying until early February next year.
Meanwhile, Beijing, as per reports, has accused Washington of undermining fair competition and warned that the tariffs could disrupt supply chains worldwide, adding that China firmly disapproves of the move.