Indian Drone Makers Left Out of US Tariff Breaks Under New Trump Proclamation

WASHINGTON — Indian drone manufacturers could face steep new U.S. tariffs after being excluded from a group of trading partners granted preferential treatment under a new import regime announced by President Donald Trump.

Trump signed a proclamation Thursday imposing new duties on foreign-made drones and critical components, citing national security concerns over U.S. dependence on overseas suppliers.

The measure does not single out India, but Indian products are not included among those eligible for reduced tariff rates.

Qualifying drones and components from the European Union, Japan, Liechtenstein, South Korea, Switzerland and Taiwan will face tariffs capped at 15 percent, while eligible products from Britain will face a maximum rate of 10 percent.

To qualify, substantially all critical components and technology must originate in the United States or one of the designated partner economies. The Commerce Department will determine whether individual products meet those requirements.

Indian-made drones that do not qualify for another exemption or an approved U.S. manufacturing arrangement could therefore be subject to the broader tariff schedule.

Under the new rules, drones weighing more than 25 kilograms, models equipped with thermal imaging technology, docking stations and certain critical components will face tariffs of up to 100 percent. Some parts used in larger drones will also be covered by the higher rate.

Exceptions are provided for certain parts intended for retail delivery, agricultural applications or sales to the Department of War.

Smaller drones weighing 25 kilograms or less and without thermal imaging capabilities will be subject to a 25 percent tariff.

Most of the new duties are scheduled to take effect Sept. 3, while tariffs on certain additional components will begin Feb. 9, 2027. The administration said the delayed implementation for those parts is intended to give U.S. manufacturers additional time to expand domestic production.

The new duties will generally be added on top of other applicable tariffs, taxes and fees.

Products included on specified Department of War and Federal Communications Commission-approved lists will receive a 180-day delay. The Commerce Secretary will also have authority to bring additional components under the tariff regime if imports are found to pose a national security risk or undermine the policy.

The proclamation does, however, provide Indian and other foreign manufacturers with a potential path around the new duties if they invest in U.S. production.

Companies approved under an onshoring program will be allowed to import covered products, supply-chain materials and manufacturing equipment without paying the new Section 232 tariffs while they build, refurbish or expand facilities in the United States.

Eligible projects must include a commitment to begin construction before Jan. 20, 2029.

The Commerce Department investigation behind the measure concluded that the United States remains heavily dependent on foreign suppliers for key drone technologies, including motors, electronic speed controllers, lithium-ion batteries and docking stations.

Officials also cited cybersecurity concerns, including the possibility that software embedded in imported drones could transmit sensitive data to manufacturers overseas. (Source: IANS)