New US tariffs of up to 100 percent took effect Thursday on drones and certain components, as Washington pushes to lower its import reliance in an industry that China dominates. US President Donald Trump signed an order setting out the duties in August, as the White House flagged 'the national security threat posed by imports of drones and their components.' The order also aims to boost domestic supply chains.
Impact of the Tariffs
Drones with a takeoff weight exceeding 25 kilograms, as well as those with thermal imaging capabilities and docking stations face a 100-percent tariff. Some components of drones that are 'not particularly sensitive' will also face duties, but those only come into effect on February 9 next year. China expressed opposition to the planned tariffs shortly after they were unveiled by Trump, with Beijing urging Washington to withdraw the duties.
Chinese Dominance and DJI
A commerce ministry spokesman said the tariffs would 'disrupt the global drone supply chain and further undermine a fair and competitive market environment.' Chinese company DJI, which was founded in 2006, has captured more than two-thirds of the global drone market in recent years, according to several studies. Since 2022, however, DJI has been on a US list of Chinese firms linked to the country's military and subject to restrictions on access to US technology. DJI has fought its inclusion on the list.
Why This Matters for Bangladesh
The imposition of these tariffs is significant for Bangladesh, a country with a growing interest in drone technology for various applications, including agriculture, surveillance, and delivery services. The tariffs may lead to increased costs for importing drones and components, potentially affecting businesses and industries that rely on this technology. Additionally, Bangladesh may need to explore alternative suppliers or invest in local drone manufacturing to mitigate the impact of these tariffs.
