Trump hits drone industry with up to 100% tariffs

"ELTA US President Donald Trump has imposed up to 100% tariffs on unmanned aerial vehicles and their components. He signed an executive order on Thursday aimed at reducing dependence on imports in this Chinese-dominated sector. The White House cited national security as the reason for the decision.

 

The new tariffs will also encourage “greater domestic” production of drones and their components and reduce dependence on foreign supply chains, the White House said in a statement. The 100% tariffs would apply, among other things, to drones with a take-off weight of more than 25 kg, as well as to drones with integrated thermal imaging cameras.

 

A 25% tariff has been set for smaller drones.

 

Most of the new tariffs are set to take effect on September 3. They will affect China the most: according to research, in 2006 The Chinese company DJI, founded in , accounts for about two-thirds of the global drone market.

 

Drones and their components from the European Union (EU), Japan, Liechtenstein, South Korea, Switzerland and Taiwan will be subject to a 15 percent tariff in the future. Imports from Great Britain will be subject to a 10 percent tariff. This decision was made after an investigation initiated by US Commerce Secretary Howard Lutnick. The secretary concluded that drones and their components from certain foreign companies pose a security risk, according to a text published by the White House. It also notes that domestic US industry does not produce enough to meet security needs."

 

Paradoxically, such a shortage of drones does not pose a threat to US security.