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World

Australia news LIVE: White House confirms Trump held phone call with Albanese; Wong to target Hanson’s call for ‘monoculture’ in national security address

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smh.com.au ·

Australia news LIVE: White House confirms Trump held phone call with Albanese; Wong to target Hanson’s call for ‘monoculture’ in national security address

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President Trump has announced that he will impose tariffs of up to 100 percent on drones. The tariff increase, which could go into effect as early as next week, is being considered for unmanned aerial vehicles, or UAVs, that are imported from countries with which the US has significant trade deficits, according to a statement from the Office of the US Trade Representative on Wednesday. The USTR said it will consider a 25 percent, 50 percent or 100 percent tariff on certain UAVs imported from countries including China. The tariff would apply to “products that are not produced in the United States in a manner that is sufficient to meet domestic demand.” The USTR did not specify which countries or companies would be affected by the tariff. The Korea Trade-Investment Promotion Agency said Thursday that Korean drones would be subject to a 15 percent tariff. The agency said that Korean exports of drones to the US would not be as severely affected as those from China, as the US currently imposes a 0 percent tariff on Korean drones. The US has a significant trade deficit with China in the drone sector. In 2018, the US imported $137.4 million worth of drones from China, while exporting only $8.9 million worth to China. The USTR said it will accept comments on the proposed tariff increase through Aug. 26. The tariff increase is being considered under Section 301 of the Trade Act of 1974, which gives the president the authority to impose tariffs on imports if the US Trade Representative determines that a country’s trade practices are unfair or unreasonable. The USTR has been conducting an investigation into China’s trade practices in the drone sector since last year. The Trump administration has been toughening its stance on Chinese imports, including imposing a 25 percent tariff on $250 billion worth of Chinese goods. The US-China trade war has been escalating, with China imposing its own tariffs on $110 billion worth of US goods. The drone sector is one of the areas where China has a significant advantage over the US. Chinese companies such as DJI, the world’s largest drone maker, dominate the global drone market. DJI is based in Shenzhen, China. The US has been trying to catch up with China in the drone sector. Last year, the US government awarded a $2.3 million grant to a US drone maker to encourage domestic production. The grant was given to a company called SkyPower. The US also has imposed restrictions on the use of Chinese drones by government agencies due to security concerns. In May, the Department of the Interior said it would stop using Chinese drones. The department cited concerns that Chinese drones could be used for espionage. The US has also been trying to rally its allies to ban the use of Chinese drones. Last month, the US ambassador to the United Kingdom, Woody Johnson, urged the UK to ban the use of Chinese drones by British police. The UK has not made a decision on the matter. The drone sector is expected to grow rapidly in the coming years. According to a report by PwC, the global drone market is expected to reach $12.4 billion by 2025. The report said that the use of drones is expected to increase in various sectors, including agriculture, construction and logistics. The US and China are competing fiercely in the drone sector. The two countries are expected to continue to clash on trade issues, including the drone sector.

·hani.co.kr

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