Washington, August 14, 2026 (Yes Punjab News)
Indian drone manufacturers have been left out of a preferential US tariff framework unveiled by President Donald Trump, potentially exposing India-made unmanned aircraft and certain components to duties of up to 100 per cent.
Trump signed the proclamation on Thursday, citing what the White House described as a national security threat stemming from US dependence on foreign-made drones and critical components.
The measure does not specifically target India or impose an India-specific tariff. However, India is not among the economies whose qualifying drone products will receive preferential tariff treatment.
Under the new regime, eligible drones and components from the European Union, Japan, Liechtenstein, South Korea, Switzerland and Taiwan will face tariffs capped at 15 per cent, while qualifying products from Britain will have a maximum rate of 10 per cent.
The lower rates will apply only if substantially all critical components and technology used in the products originate in the United States or one of the designated partner economies. The US Commerce Department will determine whether individual products meet the criteria.
Indian products that do not qualify for another exemption or an approved US onshoring arrangement could face tariffs determined by their weight, capabilities and classification.
Drones weighing more than 25 kg, those equipped with thermal imaging, docking stations and certain critical components will face a 100 per cent tariff. Specified components used in larger drones will also attract the higher rate, although exceptions have been provided for parts intended for retail delivery, agriculture or sale to the US Department of War.
Smaller drones weighing 25 kg or less and without thermal imaging will face a 25 per cent duty. The principal tariffs are scheduled to take effect on September 3, while additional duties on certain drone components will begin on February 9, 2027, giving domestic manufacturers additional time to expand production.
The duties will generally apply in addition to other tariffs, taxes, fees and charges. Products included on specified Department of War and Federal Communications Commission-approved lists will receive a 180-day implementation delay.
The proclamation also creates an opportunity for foreign manufacturers, including Indian companies, willing to establish production in the US. An onshoring programme will allow approved companies constructing, refurbishing or expanding American facilities to import covered products, supply-chain inputs and necessary production equipment without paying the new Section 232 duties while their facilities are being built. Such plans must commit to completing construction before January 20, 2029.
The Commerce Department’s investigation found that the US remains heavily dependent on foreign suppliers for key drone components, including motors, electronic speed controllers, lithium-ion batteries and docking stations.
It also raised concerns over the potential for software embedded in imported drones to transmit data to overseas manufacturers, adding to the national security considerations behind the new tariff framework.
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