Drone Tariffs Prepare for Takeoff: What Companies Need to Know Now

President Donald Trump's August 13, 2026, Section 232 Proclamation, "Adjusting Imports of Unmanned Aircraft Systems and Unmanned Aircraft Systems Components into the United States," is notable for several reasons.

First, the Section 232 tariffs have a tiered structure. Unmanned aircraft systems (UAS), colloquially referred to as "drones," weighing more than 25 kilograms or having thermal imaging capability (along with docking stations and other critical components), will be subject to 100 percent tariffs beginning September 3, 2026. Drones that weigh 25 kilograms or less and have certain other characteristics will be subject to 25 percent tariffs.

The proclamation comes on the heels of the federal government's continued focus on national security concerns related to foreign-produced drones. Those concerns have prompted notable action by several agencies, including the Federal Communications Commission (FCC) and Federal Aviation Administration (FAA), which have proposed or taken action on the basis of national security assessments.

In light of the effects of the August 13, 2026, proclamation, other government actions relevant to the U.S. drone industry and the upcoming election season, stakeholders should expect increased congressional or other investigative scrutiny of drone manufacturing.

Tariffs

The tariffs that are the subject of President Trump's proclamation are being imposed under Section 232 of the Trade Expansion Act of 1962, which authorizes the president to restrict imports on national security grounds. Consistent with the Section 232 process, the tariffs resulted from an investigation by the U.S. Department of Commerce's Bureau of Industry and Security (BIS) that commenced on July 1, 2025. The investigation reviewed the national security implications of U.S. reliance on foreign sources supplying drones and their components.

The Fact Sheet accompanying the proclamation notes that "Drones are a key technology in modern armed conflict and critical for present and future U.S. military operations" and that "U.S. drone production needs to be expanded rapidly to ensure U.S. national and economic security."

Scope and Applicability of Drone Tariffs

Under the proclamation, a 100 percent ad valorem tariff will apply to large drones and drones with thermal imaging capability, along with docking stations and drone components identified in Annex I of the proclamation, starting September 3, 2026.

A 25 percent tariff will apply to drones with a takeoff weight of 25 kilograms or less, along with components identified in Annex III. Additional components might be added on a rolling basis.

A less severe tariff of 15 percent will apply to drones from the European Union, Japan, Liechtenstein, Korea, Switzerland and Taiwan, and a 10 percent tariff will apply to drones from the United Kingdom.

Relief from Tariffs

Affected entities may receive relief from the new tariffs based on Commerce Department-approved onshoring plans. Companies with approved onshoring plans may be exempt from the tariffs on certain inputs and equipment. The proclamation authorizes Commerce Secretary Howard Lutnick to approve plans that include a commitment to build, refurbish or expand a facility in the U.S. that will produce drones, as long as construction occurs before the end of the current presidential term on January 20, 2029.

The process for requesting relief from the tariffs is similar to the one that applies for requesting a Conditional Approval from the FCC for an equipment authorization.¹

The following criteria will be used to assess these requests:

• Whether the company has received a Conditional Approval with an approved onshoring plan from the DOW or U.S. Department of Homeland Security and the anticipated start date of construction
• Whether the proposed plan's project timeline and milestones are commercially reasonable
• The anticipated annual production of covered products from the onshoring project
• Whether the proposed plan's covered products production projections are reasonable
• How the benefits of the reduced tariff rate will be allocated between the applicants of the onshoring plan 

The new Section 232 drone tariffs continue a trend from the administration of implementing increasingly nuanced Section 232 trade actions. The tiered tariff structure, and potential relief for companies with approved plans for domestic drone investments, are further evidence that Section 232 is no longer a blunt instrument for across-the-board tariffs that apply to all goods in all situations. The administration continues to tailor Section 232 trade actions to more closely fit the specific national security concerns implicated by imports in the sectors under investigation.

National Security Basis

The Commerce Department's investigation, which commenced more than a year ago, along with FCC and FAA actions, represents the latest in a sustained series of actions reflecting the administration's view that foreign-made drones present a threat to national security.

The federal government has voiced these concerns with growing frequency since 2025. Citing national security concerns, a joint rule proposed by the FAA and Transportation Security Administration (TSA) in August 2025 would permit drones weighing up to 1320 pounds to operate beyond visual line of sight, but only pursuant to specific criteria and as long as the responsible operator has undergone TSA vetting by way of security program equivalent to 49 C.F.R. § 1544.101(g). The proposed FAA and TSA rule also includes language indicating the agencies might impose additional security requirements on other types of beyond visual line of sight operations.

In addition, the FCC has been instrumental in curtailing the importation, marketing and use of foreign-made drones in the U.S. As mentioned in prior Holland & Knight alerts, a December 21, 2025, national security determination prompted the FCC's addition of all foreign-produced drones to the FCC Covered List put drone security in the spotlight. The FCC remains extremely active in shaping the drone industry, as reflected in previous Holland & Knight alerts: "FCC Adds All Foreign-Made Drones and Critical Components to the Covered List," December 23, 2025, "FCC Exempts Certain Drones from Covered List," January 13, 2026, "Unleashing Drone Dominance: The FCC Perspective and Request for Comments," April 3, 2026, and "Citing National Security Needs, the FCC and FAA Take Steps on UAS Regulation," May 12, 2026.

This year has brought even more changes and expressions of concern and has indicated the federal government intends to stymie the importation or use of certain foreign-made products. The FCC added foreign-produced routers to the Covered List in March 2026 and, in July 2026, added advanced robotics devices and power inverters to the Covered List. As for the FAA, on May 6, 2026, the agency published its long-awaited notice of proposed rulemaking implementing Section 2209 of the FAA Extension, Safety, and Security Act of 2016, which would establish a process for owners or proprietors of critical infrastructure facilities to apply for drone flight restrictions over such facilities based on security needs (see Holland & Knight's aforementioned May 12, 2026, alert). Meanwhile, BIS has recently eased export controls on certain drones and related products in an effort to "support the competitiveness of the U.S. drone industrial base while protecting national security."

The coming months will consist of implementation measures for the Section 232 tariffs, given that the effective date for some of the duties will occur in early September 2026, while other drones will be subject to tariffs in February 2027. Based on the proclamation's reference to the FCC Conditional Approval framework, along with its reference to the Blue UAS Cleared List, stakeholders should expect a coordinated, whole-of-government approach to mitigating the national security threats about which the federal government is concerned.

Next Steps: Are Investigations Likely?

Congressional Democrats in particular are seeking to refocus their oversight away from the executive branch and toward the private sector. However, with members in both parties expressing concerns over the administration's tariff strategy and multiple polls indicating the majority of Americans disapprove of the handling of tariffs on imported goods, stakeholders should anticipate congressional oversight both before and after the upcoming midterm elections.

In particular, manufacturers and other stakeholders should prepare for congressional investigations to focus on the impact of tariffs across the supply chain, with an emphasis on how those costs are passed on to small businesses and consumers. This includes investigations into any company that received some form of tariff relief over the past two years. In addition, stakeholders might anticipate investigations of the FCC's decision-making related to a variety of issues, including additions to the Covered List or any perceived political influence or conflict of interest. Stakeholders should also expect committees of relevant jurisdiction to conduct oversight of the administration's implementation of statutes concerning drone use or security measures, such as the recently passed SAFER SKIES Act.

Holland & Knight's Drone Team has closely tracked the recent changes in the legal landscape that applies to drones, and Holland & Knight's International Trade Group is highly experienced in navigating changes in trade policy. Our Congressional Investigations Team also advises companies facing congressional oversight or scrutiny, including in matters involving emerging technologies and national security.

If you have questions about the potential impact on your business or other matters relating to UAS regulation or international trade decisions, contact the authors or another member of these teams.

Notes

¹ As described in prior Holland & Knight alerts, foreign-produced drones are on the FCC Covered List and therefore ineligible for receiving a requisite FCC equipment authorization. However, drones that fulfill the Buy American standard, are listed on the Blue UAS Cleared List or have received Conditional Approval are eligible. Drones that have received Conditional Approval are subject to certain criteria, such as a sunset date on the approval.

Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult the authors of this publication, your Holland & Knight representative or other competent legal counsel.