Washington — Indian drone manufacturers have been excluded from a new preferential U.S. tariff framework that gives selected trading partners lower duty rates, leaving some India-made drones and components potentially subject to tariffs of as much as 100%.
President Donald Trump signed the proclamation Thursday, saying the measure was intended to address national security concerns stemming from U.S. dependence on imported drones and critical components.
The policy does not impose a tariff specifically on India. However, India is not among the economies eligible for reduced rates under the new system.
Qualifying drones and components from the European Union, Japan, Liechtenstein, South Korea, Switzerland and Taiwan will face tariffs capped at 15%, while eligible products from the United Kingdom will face a maximum rate of 10%.
Those concessions will apply only when substantially all critical components and technology originate in the United States or one of the designated partner economies. The U.S. Commerce Department will determine which products qualify.
Indian-made products that do not meet another exemption or qualify under an approved U.S. manufacturing arrangement will generally face the broader tariff schedule based on weight, capabilities and product classification.
Drones weighing more than 25 kilograms, drones equipped with thermal imaging, docking stations and certain critical components will face tariffs of 100%. Some parts used in larger drones will also be subject to the higher rate, although exemptions are provided for certain retail, agricultural and U.S. Department of War uses.
Smaller drones weighing 25 kilograms or less and without thermal imaging will face a 25% tariff.
Most of the new duties are scheduled to take effect Sept. 3, while tariffs on certain additional drone components will begin Feb. 9, 2027. The duties will generally be added on top of other applicable tariffs, taxes and fees.
The proclamation also creates an alternative path for foreign drone companies willing to expand manufacturing in the United States. Approved companies building, refurbishing or expanding U.S. facilities could import covered products, supply-chain inputs and production equipment without paying the new Section 232 duties during construction.
To qualify, companies would have to commit to beginning construction before Jan. 20, 2029.
The Commerce Department’s investigation found that the United States remains heavily dependent on foreign suppliers for components including motors, electronic speed controllers, lithium-ion batteries and docking stations. It also cited concerns that software embedded in imported drones could transmit data to manufacturers overseas. (Source: IANS)
