In an orderly pattern: Donald Trump enters a new war against China
US President Donald Trump has decided on a new economic step against China: imposing tariffs on drones, at a rate of 100% on large drones with military use and 25% on smaller ones. The decision is based on Section 232 of the Trade Expansion Act of 1962, and joins other technological sanctions. At the same time, he signed a presidential memorandum to incentivize investments in building ships for the American navy.
US President Donald Trump has decided on a new economic step against China, as part of the quiet and ongoing struggle between the two countries. According to a report in the Wall Street Journal, the tariff tiers were set according to the level of sensitivity of the devices and their country of origin. Large drones with military characteristics, such as thermal imaging systems and critical technological components, will face a tax of 100% of their value. Smaller drones and parts that do not have a direct security impact will be charged a tariff of 25%. Washington's allies will receive preferential terms: products from the European Union, Japan, South Korea, and Taiwan will be charged only 15%, and Britain will receive a rate of 10%, provided that most of the development and components originate in these countries or in the US. The decision is based on Section 232 of the Trade Expansion Act of 1962, which allows the president to impose tariffs for reasons of national security. This legal tool was used by the administration in the past to impose tariffs on steel and vehicles, and is considered particularly robust. The step joins a series of technological sanctions imposed on Beijing recently, and comes at a tense time, a few weeks before Trump's planned meeting with Chinese President Xi Jinping. At the same time, the president signed a special presidential memorandum aimed at incentivizing direct federal investments in building and repairing ships for the American navy, in order to restore US maritime strength. The tariffs on drones will take effect within 21 days, while the levies on non-sensitive components will be applied in about six months.
In an orderly pattern: Donald Trump enters a new war against China