The U.S. 'Section 232 tariffs' on drones and related components will take effect on September 3. On the 14th, the Ministry of Economic Affairs (MOEA) announced it will accelerate the alignment of Taiwan's domestic certification and verification systems with U.S. standards to help manufacturers obtain export eligibility and certification for the U.S. market.

According to the U.S. announcement, Taiwan has been included in the list of countries eligible for lower tariff rates, alongside the European Union (EU), Japan, South Korea, and Switzerland. Provided that key components and technologies originate from the U.S. or designated countries, a 15% tariff rate will apply. This will help maintain Taiwan's competitive edge in exporting drones to the U.S. and seize business opportunities arising from global supply chain shifts.

On September 13 (U.S. Eastern Time), the U.S. government released the results of its investigation into drones under Section 232 of the Trade Expansion Act of 1962, concluding that the import of unmanned aircraft systems (UAS) and components poses national security concerns. As a result, differentiated tariffs will be applied based on product type. Generally, small and medium-sized drones will be subject to a 25% tariff, while large or sensitive-function drones and key components will face a 100% high tariff.

However, products from Taiwan, the EU, Japan, South Korea, and Switzerland can qualify for the 15% rate if they meet U.S. requirements regarding the origin of key components and technologies, and the rate will not be叠加 with Most Favored Nation (MFN) tariffs—making it a relatively favorable tier under the new measures. The MOEA believes that, due to this tariff gap, Taiwanese manufacturers can enhance their relative competitiveness and capture international order shifts and expand U.S. market access.

The MOEA noted that Taiwan's drone industry primarily focuses on models under 25 kg, with sub-5 kg models being the main export drivers. These are widely used in inspection, surveillance, and smart management applications. In contrast, drones over 25 kg are mainly used in agriculture, where Chinese manufacturers still hold certain advantages.

However, as major markets like the U.S. continue to strengthen supply chain security and local production, Taiwanese manufacturers are gaining new opportunities to enter the supply chains for large drones and key components.

Notably, the 15% preferential tariff requires that 'key components and technologies substantially originate from designated countries or the U.S.' The MOEA stated that this regulation aligns with the government's ongoing 'non-red supply chain' policy for drones. Moving forward, it will assist manufacturers in auditing their bill of materials (BOM) and sourcing of key components, and integrate supply chain resources from U.S., Japanese, and European partners to help firms comply with regulations and secure lower tariff treatment.

Beyond tariffs, the U.S. Federal Communications Commission (FCC) has progressively added foreign-made drones and key components to its Covered List, raising market entry barriers. In response, the MOEA has already designated the Industrial Technology Research Institute (ITRI) as the only overseas certification hub for Green UAS in the U.S. framework and facilitated the Metal Industries Research & Development Centre (Metal Centre) to align with the Blue UAS certification system. The MOEA will continue to strengthen domestic certification capabilities and accelerate alignment with U.S. standards to help more Taiwanese firms enter the U.S. supply chain and expand overseas business opportunities.

U.S. Drone Section 232 Tariff Measures Overview

Applicable Parties Tariff Rate MFN Main Conditions

Taiwan, EU, Japan, South Korea, Switzerland 15% Not叠加 Key components and technologies must originate from designated countries or the U.S.

United Kingdom 10% MFN叠加 Hardware, software, and technology must originate from preferential countries or the U.S.

Other Countries – General Drones 25% MFN叠加 Under 25kg, non-thermal imaging models, general components

Large or Sensitive Drones 100% MFN叠加 Over 25kg, thermal imaging drones, key components

Source: Ministry of Economic Affairs

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  • Source: PR Times
  • Category: News