US Tariffs Pose Opportunity for Taiwan's Emerging Drone Sector
By John Su/Lily LaMattina
New US tariffs are hitting Taiwan’s emerging drone industry. But as concerns grow over Chinese-made technology, Taiwanese manufacturers see a chance to gain ground in the US market and build a “non-red” supply chain.
REPORTER:
Taiwan’s emerging drone industry is facing a new challenge. The Trump administration has announced new tariffs on drone imports, aimed at reducing reliance on foreign suppliers, particularly China.
REPORTER:
Larger drones weighing over 25 kilograms or with technology sensitive to national security will face a 100% tariff. Smaller drones with less sensitive technology will face a 25% rate. For Taiwan, its drones and components will face a 15% tariff under the new policy.
REPORTER:
China has long dominated the drone market. But countries have raised security concerns about Chinese-made drones and components. This has led to an effort to build a so-called “non‑red” supply chain—developing drone products without Chinese components or technology.
REPORTER:
Analysts in both Taiwan and Washington say these tariffs could reshape the commercial drone market, forcing US customers to buy from US suppliers or allied countries—at a higher cost. Taiwan’s economy ministry has not yet responded to a request for comment. But for Taiwanese drone manufacturers, they say the move could potentially help them tap into the US “non‑red” supply chain.
Gene Su (GENERAL MANAGER, THUNDER TIGER):
Short term, we were certainly facing a little bit, uh, cost challenges, but, uh, we will be much more competitive than other, uh, companies from China or, uh, from other sensitive countries. So all in all, long term, it's a great opportunity to us.
REPORTER:
Taiwanese companies such as Thunder Tiger that are building factories in the US could also face less impact, aligning with Trump’s efforts to bring manufacturing back to US soil.
REPORTER:
As governments in the United States and elsewhere turn to so-called “non-red” supply chains, Taiwan’s drone market may still have an opportunity to expand as a trusted alternative to China.
John Su and Lily LaMattina in Taipei for TaiwanPlus.
