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The Economic Times
The Economic Times

Trump to impose 100% tariffs on larger, sensitive drones; smaller models face 25% levy

Washington: President Donald Trump said on Thursday he will impose tariffs on imports of ‌drones and their components, ⁠including ⁠from some key U.S. allies, with the Trump administration saying the country was "too reliant" on foreign sources ​of drones.

A proclamation signed by Trump imposes a 100% ad valorem tariff on drones of ​a certain size or with certain capabilities that are particularly sensitive for national security purposes, the White House said, adding that a tariff of 25% will ​be imposed on drones that are smaller in size.

Also read: US court backs Trump's power to close 'de minimis' tariff exemption

A ⁠15% tariff ‌will be imposed on drones and components from the European ​Union, Japan, Liechtenstein, ​South Korea, Switzerland, and Taiwan, and a 10% ad valorem ⁠tariff will be imposed on drones from the UK, the ​White House added.

Trump has made tariffs a central pillar ​of his foreign and trade policies despite legal setbacks and criticism from some analysts.

Trump said in the proclamation text released by the White House that Commerce Secretary Howard Lutnick had probed the effects of imports of unmanned aircraft systems or drones.

"The Secretary found that import penetration from foreign producers of UAS is substantial ‌and that the United States is too reliant on foreign sources of UAS and UAS components," Trump said.

Also read: Trump White House says it's losing $19B-$26B a year in revenue as countries dodge tariffs

Lutnick found that drone ​and drone components ​from certain foreign entities "pose ⁠security and safety risks" and that the domestic U.S. industry does not produce enough to meet security needs, Trump said.

The tariffs will take effect in 21 days, the ​White House said.

For components of drones that are not particularly sensitive, the tariffs will take effect 180 days after signing, it said.

For products the Pentagon 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, the White House said.

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