US to Impose Tariffs of Up to 100% on Drones and Components... 15% for Korean Products
The United States will impose tariffs of up to 100% on imported drones and parts. This move is seen as effectively targeting China, which dominates the global drone market. Korean-made drones and parts will be subject to a 15% tariff rate.
On August 13 (local time), U.S. President Donald Trump signed a proclamation with these measures in order to address national security threats posed by the import of drones and related parts, and to strengthen the U.S. drone industry and supply chain.
According to the proclamation, drones with a maximum takeoff weight exceeding 25 kg, or drones with high national security sensitivity such as those equipped with thermal imaging features, as well as docking stations and certain key parts, will face a 100% tariff. Drones with a maximum takeoff weight of 25 kg or less and some drone parts will be subject to a 25% tariff.
Tariffs of up to 15% were set for drones and parts originating from the European Union, Japan, Liechtenstein, Korea, Switzerland, and Taiwan, and up to 10% for those made in the United Kingdom. However, in these cases, virtually all core parts and technologies must originate from those countries or the United States.
The 100% tariff and the 25% tariff on small drones will take effect at 12:01 a.m. Eastern Time on September 3 (1:01 p.m. Korean time). The 25% tariff on some drone parts with low national security sensitivity will begin at 12:01 a.m. on February 9 next year.
In the proclamation, President Trump explained that U.S. Secretary of Commerce Howard Lutnick had submitted a Section 232 investigation report under the Trade Expansion Act on the national security impacts of importing unmanned aircraft systems (UAS), their parts, and components. Secretary Lutnick assessed that UAS are essential to U.S. national and economic security, and that the infiltration of foreign-made drones into the U.S. market is significant. He also pointed out that the United States is excessively dependent on foreign-made drones and parts.
In explanatory materials related to the proclamation, the White House stated, "Drones are a core technology of modern warfare and are essential to current and future U.S. military operations," adding, "To secure U.S. national and economic security, domestic drone production must be rapidly expanded."
Bloomberg News analyzed that this announcement could have a significant impact on the Chinese drone industry. It is expected to put pressure on Chinese President Xi Jinping ahead of a summit with President Trump. China, in fact, leads the global drone market. As of last year, DJI Technologies accounted for about 70% of the U.S. commercial drone market.
Hot Picks Today
"Does This Really Work?" Just Add Cold Water... Cup Noodles Sell Out in 68 Years' First Craze
- "Working One Month in Korea, Receiving a Lifetime Pension"... National Pension Service Responds to Foreigners' Additional Payment Loophole
- "I'm Not Selling, I'm Still Waiting"... Why Jeon Wonju Holds Firm Despite a 9,000% Return on SK hynix
- "This Happens in Korea"... Taiwanese Tourist Tears Up After Recovering 1.3 Million Won Left in Taxi
- "Please Catch Me!" Woman Lets Go from 11th Floor... Leaps Toward Firefighter in Daring Rescue
Meanwhile, the U.S. Federal Communications Commission (FCC) previously restricted new imports and sales of certain foreign drones, including new DJI models. More recently, similar measures have been taken against some foreign-made robots and power inverters.
© The Asia Business Daily. All rights reserved. Unauthorized AI training and use prohibited.