Taiwan upbeat on U.S. drone market despite tariffs

Taipei, Aug. 14 (CNA) The government on Friday expressed optimism about expanding Taiwan's share of the U.S. unmanned aerial vehicle (UAV) market after Washington imposed new tariffs that include a 15 percent duty on drones and drone components imported from Taiwan.

The Executive Yuan's Office of Trade Negotiations said Taiwanese companies are well positioned to benefit from shifting supply chains and increase their presence in the U.S. market.

Taiwan is currently the sixth-largest supplier of drones to the United States, behind Vietnam, China, Canada, Norway and Switzerland, according to the office.

The White House on Thursday announced a new package of import tariffs aimed at reducing national security risks and reliance on foreign manufacturing.

Under the policy, drones weighing more than 25 kilograms, drones equipped with thermal imaging systems and critical drone components will be subject to a 100 percent tariff, while smaller models will be subject to a 25 percent tariff.

However, imports from Taiwan, the European Union, Japan, Liechtenstein, South Korea and Switzerland will be subject to a lower 15 percent tariff, while those from the United Kingdom will face a reduced 10 percent tariff, provided substantially all hardware, software and technology originate in those countries or the United States, according to the White House.

The new tariffs will take effect Sept. 3, except for products considered less sensitive, which will become subject to the duties after a 180-day period, the White House said.