Taipei: Taiwan-based Teco Electric and Machinery Co. announced plans to assess the feasibility of producing drone components in the United States after President Donald Trump declared the imposition of up to 100 percent tariffs on certain unmanned aerial vehicles (UAV) imports. The proclamation by Trump targets drones with specific capabilities deemed sensitive for national security.

According to Focus Taiwan, Teco, known for its development of power systems for drones, highlighted that the tariffs would impact drones and components from various regions differently. While Taiwan, the European Union, Japan, South Korea, Switzerland, and Liechtenstein will face a 15 percent tariff, the United Kingdom will see a 10 percent tariff. The tariffs are set to take effect 21 days from the signing, though tariffs on less sensitive drone components will commence 180 days post-signing.

Teco currently operates a production base in Taoyuan's Zhongli District and is contemplating establishing a U.S. facility to mitigate the new tariffs' impact. Drones equipped with Teco's power systems are primarily used for commercial and agricultural purposes, including logistics, firefighting, disaster relief, solar panel cleaning, and pesticide spraying.

Thunder Tiger Corp., another drone manufacturer, remarked that the tariffs signify a shift in the global supply chain more than a tariff issue. The company suggested that this might lead to increased U.S. production to secure more Pentagon orders, aligning with efforts to establish a trusted supply chain and reduce reliance on China. Thunder Tiger currently operates production lines in California and Ohio.

Meanwhile, CUB Elecparts Inc., specializing in advanced driver-assistance systems and drone countermeasure systems, indicated that its products are not affected by the new tariffs. As the U.S. is not a significant market for CUB, the tariffs are expected to have minimal impact. However, CUB plans to monitor any shifts in trade policies globally.

E-Lead Electronic Co., a Taiwanese supplier of augmented reality head-up displays and drone components, reported minimal expected impact from the tariffs, as Europe remains its primary market for drone products.