US President Donald Trump announced the imposition of a tariff of up to 100% on the import of unmanned drones and their components. America has taken this decision for national security reasons and with the aim of reducing dependence on other countries in this sector dominated by Chinese companies. In a statement issued by the White House, it has been said that this decision will increase domestic production of drones and their components in America and reduce dependence on foreign supply chains. Till last year, the Chinese company had about 70% share in the US commercial drone market. Tariff decided according to the weight and capacity of the drone. According to the White House, 100% tariff will be imposed on drones considered sensitive from national security point of view. Implementation Timeframe and Exemption Rules The new tariff structure will be implemented in staggered timelines… Special Exemptions: Within 20 days of signature Tariffs will also go into effect 180 days later on products and components exempted from the FCC’s Covered List by the U.S. Department of War. Tariff on 7 allied countries including Britain and Europe: America has imposed tariffs not only on rival countries but also on drones coming from its allied countries… Preparations to crack down on China’s drone companies According to the Financial Times report, this decision has come at a time when the Trump administration is intensifying its action on Chinese drone technology. In December last year, the Federal Communications Commission (FCC) had announced a ban on the import of Chinese drones and banned drones from rival countries from granting approval for wireless communications. The global market is dominated by Shenzhen-based company DJI Technologies, which had about 70% of the US commercial drone market as of last year. Apart from this, recently China also banned drone exports to America and blacklisted six companies in response to US trade sanctions. Concern increased over Russia-Ukraine war and hybrid war: According to Bloomberg report, the Russia-Ukraine war has highlighted the important role of drones in the modern battlefield. The use of drones by both countries to protect and capture territory has given rise to a new hybrid war. In his official letter, Trump has termed the unmanned aircraft system as extremely important for America’s national and economic security. Experts’ opinion: The structure of the commercial market will completely change. Craig Singleton, an expert on US-China technology competition, told the Financial Times that this decision will completely reshape the commercial market. Craig Singleton said US commercial and government buyers would immediately need a major capital infusion. They will now have to turn to suppliers from America or allied countries, even if the price of their products is higher. The decision could seriously impact China’s drone market and increase tensions ahead of the upcoming meeting between Trump and Chinese President Xi Jinping. What is Unmanned Aircraft System (UAS)? Unmanned Aircraft System (UAS) is commonly called drone. These are such aircraft which are flown without any human pilot through remote control or automatic software. They are used in everything from photography, delivery of goods to military surveillance and precision strikes. Also read this news… Supreme Court said – Put warning labels on packaged food: Give information about excess sugar, salt and fat, if the government does not do this then we will give orders. The Supreme Court on Thursday has given a final warning to the Central Government and the Food Safety Authority (FSSAI) on the warning labels of packaged food products. The court said that if the government is unable to take a decision on putting warning labels warning of excess sugar, salt and fat on packets of namkeen, biscuits and chips, then we will issue an order. Read the full news…
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