Overview
- The president has signed an order that sets differentiated tariff rates on drones and parts, including a top rate of 100% for heavier or thermal-equipped systems and 25% for smaller, non-sensitive models.
- The measure applies lower, country-specific rates for allies in some categories, listing 15% for the EU, Japan, Liechtenstein, South Korea, Switzerland and Taiwan and 10% for the United Kingdom.
- Most tariffs are scheduled to take effect 21 days after the order, with a 180-day delay for less sensitive parts and for items the Defense Department removes from the FCC’s designated 'Covered List'.
- Commerce Secretary Howard Lutnick’s investigation is cited as the basis for the action, finding foreign-made drones and components pose security risks and that U.S. industry cannot yet meet defense needs.
- Legal uncertainty looms because a federal court in May found many prior tariffs unlawful, and the new order could prompt appeals, diplomatic friction with trading partners, and incentives for U.S. manufacturers and buyers to shift supply chains.