Trump imposes tariffs of up to 100% on imported drones and their components

The United States will apply a tariff of up to 100% on imported unmanned aircraft systems and their parts, The Hindu reported. The top rate covers drones with a maximum takeoff weight above 25 kilograms and those with capabilities the administration classifies as security-sensitive, including thermal cameras and docking stations.

Smaller drones without those capabilities, and most components, face 25%. Producers in the European Union, Japan, Liechtenstein, South Korea, Switzerland and Taiwan face 15%, and British exporters face 10%. The measures take effect in 21 days, with a 180-day delay for less sensitive components, according to the White House fact sheet. China dominates commercial drone manufacturing, and the structure of the rates makes clear that displacing Chinese supply is the objective.

Other governments are solving the same problem with procurement rather than trade barriers. Globes reported that the United States is accelerating production of air-defence interceptors, that the United Arab Emirates has presented a drone designed for simple local assembly, that South Korea has awarded a domestic manufacturer a contract for mass production of unmanned ground robots because it does not have enough soldiers, and that a new fund will invest in Israeli defence technology companies.

The common thread is that security of supply is being purchased rather than earned through competition. A 100% tariff does not make an American drone cheaper to build. It makes the imported alternative more expensive, and the difference is paid by police departments, farmers, surveyors and utilities that use these aircraft as tools. Manufacturing capacity built under that protection is profitable only as long as the tariff remains in place, the standard condition for capital committed to production that would not otherwise be economically viable.