On August 13, President Trump issued the latest hit to drone operators and manufacturers. His proclamation “Adjusting Imports of Unmanned Aircraft Systems and Unmanned Aircraft System Components Into the United States” under Section 232 of the Trade Expansion Act slaps heavy new tariffs on drones and components.
What Do The New Tariffs Mean?
Drones are going to be much more expensive. The proclamation creates more uncertainty around pricing and availability of drones for operators, and higher costs for US manufacturers who use imported components.
As of September 3, the following drone imports will be tariffed:
- 100% tariff – All imports of drones with a maximum takeoff weight of more than 25 kilograms (approx. 55 lbs), drones (regardless of weight) with thermal imaging capabilities, UAS docking stations, and various components.
- 25% tariff on smaller drones that implicate national security
- 15% tariff on drones and components from European Union, Japan, Liechtenstein, Republic of Korea, Switzerland, and Taiwan, (and 10% tariff on drones and components from the UK) so long as substantially all hardware, software, and technology originates in those countries and the US.
Some tariffs have longer to kick in. The following go into effect February 9, 2027:
- 25% tariff on aircraft components (including propellers, rotors, and parts for use in civil aircraft generally).
- Companies on the DoD’s Blue UAS Cleared List, the Blue UAS Framework, or the FCC’s Conditional Approval List as of September 2, 2026 have until February 9, 2027, but will have to comply with the other applicable tariffs after that date.
The Proclamation also authorizes the Secretary of Commerce to add UAS components to the tariffs on a rolling basis to address national security needs.
It’s unclear how much of the tariff costs will be absorbed by consumers, but it’s unlikely that a manufacturer or supplier will be able to cover a tariff that doubles the cost of the UAS or the docking station without passing on at least some, if not all, of the cost to the buyer. For smaller UAS operators who have already been struggling to purchase or replace drones due to the FCC restrictions, this is yet another costly restriction.
Incentivizing U.S. Manufacturing? It’s not that Simple
If drone manufacturers commit to moving their production to the US, the Secretary has the authority to reduce the tariffs on their products to 0% in the meantime. These “onshoring plans” require a commitment to construct facilities before January 20, 2029, prior to the next Presidency but notably after the next Presidential election.
If at any point Commerce determines that the company isn’t adequately working toward its commitment to transfer production to the US, the Secretary can reassert the tariffs retroactively. This gives the Administration a heavy stick to hold over any manufacturer that chooses to onshore. Many companies may decide it’s not worth the hassle, or may decide to take their chances, declare that they will onshore, then never follow through. Either way, 2029 is a long time for operators to have replacement parts or drone costs doubled.
Manufacturers require sufficient infrastructure for manufacturing to be economically viable. Drone manufacturers need competitive domestically-produced components and a market demand for US drones that supports scaled production. The US currently lacks sufficient infrastructure to build all the components necessary for certain types of drones and lacks domestic access to certain rare minerals or processing that may be required in order to make every component. Currently, many “American-made” drones rely on foreign-made components, particularly for sensors. These tariffs may actually pose an obstacle for US-based drone manufacturers who lack US-manufactured components.
Predicting the Future
Although there’s no way to predict exactly how these tariffs will play out over the next few years, we have a recent example in how this administration is handling the Federal Communications Commission (FCC) “covered list.” Last December, the FCC announced its national security “Covered List,” however the FCC has issued extensive exceptions to the list in the last seven months. On July 21, the FCC announced approved manufacturers could keep their Conditional Approvals indefinitely and extended the exemptions for Blue UAS listed products. In theory, the FCC retains the ability to revoke the exceptions, but to date hasn’t done so for any manufacturer.
Given the ability of the Secretary of Commerce to reduce the tariffs to zero if a company demonstrates its onshoring plans, we may see a rapidly growing list of “onshoring companies” that have plans to build a US manufacturing site on January 20, 2029 who will be taking advantage of the tariff reduction long before they start manufacturing in the US (assuming they don’t abruptly change their minds January 21, 2029.)
So hang on, drone operators and manufacturers, and keep an eye on Commerce to see who gets their tariffs reduced.