US tariffs of up to 100pc on drones take effect as Washington targets China‑dominated industry
WASHINGTON, Sept 3 — New US tariffs of up to 100 per cent took effect today on drones and certain components, as W...
On September 3, 2023, the United States imposed new tariffs of up to 100 percent on drones and related components, as part of President Donald Trump's efforts to reduce reliance on Chinese imports in a sector that Beijing dominates. The duties, announced in August, were aimed at protecting US national security and bolstering domestic supply chains.
The order specifically targets drones weighing over 25 kilograms, as well as those equipped with thermal imaging and docking capabilities, imposing a full 100 percent tariff. Smaller drones, however, face a 25 percent duty. Certain non-sensitive drone components will also incur duties, but these will not take effect until February 9, 2024.
China quickly voiced its opposition to the proposed tariffs, urging the United States to retract the measures. A Chinese commerce ministry spokesperson stated that the tariffs would "disrupt the global drone supply chain and undermine a fair and competitive market environment." Beijing firmly opposed the move, highlighting the significant threat it posed to China's domestic drone industry.
China's DJI, founded in 2006, has emerged as the dominant player in the global drone market, controlling over two-thirds of sales since 2022. However, DJI has been on a US list of Chinese entities with ties to the military, limiting its access to US technology since 2022. DJI has contested its inclusion on the list.
The imposition of these tariffs is expected to have far-reaching implications for the global drone industry, potentially leading to a shift in manufacturing and supply chain dynamics.
Written by urgent.news from Malay Mail's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.