Industry ministry to assess US drone tariff impact on South Korean industry

The industry ministry said Friday that the United States will impose tariffs of up to 100 percent on unmanned aircraft systems (UAS) and components from Sept. 3.

The White House announced the proclamation under Section 232 of the Trade Expansion Act on Aug. 13, U.S. local time. The United States cited dependence on foreign supply chains, cybersecurity vulnerabilities and the need to expand domestic capacity to produce UAS and components as reasons for the tariffs.

UAS docking stations and certain core parts will face the 100 percent rate. Some other components will face a 25 percent tariff from Feb. 9, 2027, for companies with drone-related certification or approval from the U.S. War Department or Federal Communications Commission.

South Korean UAS and components can receive a total tariff rate no higher than 15 percent if virtually all core components and technologies originate in South Korea or the United States. The cap also applies to qualifying goods from Japan, Taiwan, the European Union, Switzerland and Liechtenstein. The commerce secretary has yet to establish the procedure for deciding whether goods meet the core-component and technology requirement, while the preferential rate's application scope remains unsettled.

Companies that begin building, repairing or expanding U.S. UAS and parts facilities before Jan. 20, 2029 may, with U.S. Commerce Department approval, import covered products and manufacturing equipment without Section 232 tariffs during construction. The duty-free volume can equal the facilities' anticipated annual production.

The ministry plans consultations with U.S. authorities on unresolved certification rules and their application to South Korean goods and will assess the potential impact on domestic businesses with other government agencies.