For China, Trump’s new drone tariffs threaten to deepen trade rift with US

For China, Trump’s new drone tariffs threaten to deepen trade rift with US Disrupted supply chains could complicate efforts of Chinese firms to expand globally in the fast-growing drone industry, while raising costs for American buyers Tariffs of up to 100 per cent that Washington has announced on imported drones would result in a “lose-lose outcome” for the United States and China, analysts said, as the technology is increasingly taking centre stage in the countries’ tech and trade rivalry. The new levies will further complicate manufacturers’ efforts to shift production to third countries or regions, where supply chains are already affected by earlier trade restrictions imposed by both sides, they added. On Thursday, US President Donald Trump signed a proclamation imposing tariffs on imported drones and their components, citing national security and cybersecurity risks. The measures were due to take effect 21 days after the signing. Drones deemed particularly sensitive for national security purposes, including those with a maximum take-off weight of more than 25kg (55lbs) or thermal-imaging capabilities, as well as their docking stations and certain critical components, face a 100 per cent tariff. Smaller drones face a 25 per cent tariff. Drones and components from the European Union, Japan, Liechtenstein, South Korea, Switzerland and Taiwan face a 15 per cent duty, provided that substantially all of the hardware, software and technology originates in those countries or the United States. Imports from the United Kingdom face a 10 per cent tariff.