President Trump has imposed tariffs up to 100 percent on drones that are “particularly sensitive” for national security, the White House announced. The move will force operators to find other suppliers or settle for models with lesser capabilities than the Chinese drones that dominate the market in the US.
The White House will impose a 100 percent tariff on drones over 25kg (55 pounds), or those equipped with docking stations or thermal imaging capabilities. Those include commercial models from DJI and others used for operations like power line inspection, crop spraying and search and rescue, along with any parts used in their manufacturing.
Drones under 25kg will be hit with a 25 percent tariff that will apply to new and existing drones by DJI and others already approved by the FCC. A 15 percent levy will be applied to models from the EU, Japan, Korea, Switzerland and Taiwan, provided their components are primarily made in those countries. UK drones will see a 10 percent tariff hit.
The aim with the tariffs, the White House stated, was to strengthen national security and encourage “on-shoring” of drone components. To the latter end, the government is creating incentive programs for US companies that make new investments in the manufacturing drones and drone components. The move will also close a loophole that allowed companies to buy components from China and assemble them in the US, an expert told The Financial Post.
As with Trump’s previous tariffs, they’ll be paid by the vendors importing those drones and passed on to consumers. Even if the new levy is defeated in court, buyers aren’t likely to receive a tariff refund cheque in the mail.
The new White House tariffs follow a recent FCC move to ban sales of LiDAR-equipped drones it had previously approved, citing military use, including models from DJI currently available in the US. It would also affect drones used by farmers and rescue workers. The new tariffs appear unrelated to a current US ban on new DJI drones, cameras, microphones and other consumer products.
As with the manufacturing of smartphones and other high-tech products, China is leaps ahead of the US and any other country when it comes to drones. DJI’s models, for example, are so advanced that they’re virtually irreplaceable in the market. On top of that, companies can’t just start building high-tech drones in the US, for the same reason they can’t build smartphones: America lacks the localized supply chains, specialized factories, unique engineering knowledge and large-scale skilled labor pools found in China.
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