Washington has moved to reshape the global drone market with a sweeping tariff order that hits imported unmanned aircraft and their components with duties of up to 100%. The measure, signed by President Donald Trump on Thursday, uses Section 232 of the Trade Expansion Act — the same national security provision already applied to steel, aluminium, copper, cars and pharmaceuticals.
European producers have been spared the harshest bracket. Equipment from the European Union will face a 15% tariff, while British-made models will be charged 10%. The US argues it can no longer rely on foreign factories for a technology that has transformed modern warfare and is now central to battlefield strategy.
The top 100% rate applies to drones weighing more than 25 kilograms at take-off or equipped with thermal imaging, as well as their docking stations and certain critical components. Smaller, less capable models and other parts face a 25% tariff.
Strict origin rules could erode the discount
The preferential rates for the EU and UK come with a significant caveat. To qualify, all of a drone's hardware, software and technology must substantially originate in those countries or the US. That is a demanding test for European manufacturers, whose motors, batteries, cameras and flight controllers are often still sourced from Chinese suppliers that dominate global production.
If a drone fails the test, it does not simply lose the discount — it falls back into the 25% or 100% category, depending on its size and capability. The tariffs take effect 21 days after the order is signed, or 180 days for less sensitive components. The US Secretary of Commerce has been instructed to design a programme rewarding companies that move production onshore.
Who in Europe is exposed
Europe's drone industry is one of the continent's fastest-growing technology sectors, and the US is its most coveted export market. France's Parrot is the most directly exposed listed manufacturer, as its ANAFI range is certified under American defence procurement rules and is the default non-Chinese option for Western police and security forces.
Germany's Quantum Systems, valued above €1 billion, sells its reconnaissance aircraft to American customers, while Portugal's Tekever, worth over €1.1 billion, has been expanding into the US. For some, geography limits the damage. Quantum Systems already operates production facilities in the US, and several peers have been building American capacity to satisfy procurement rules favouring domestic suppliers. For them, the tariff is an argument for accelerating plans already under way.
The move is part of a broader US military overhaul. On the same day, Trump signed a memorandum ordering the construction of a fifth naval shipyard — the first in more than 80 years — to expand submarine and aircraft carrier repair capacity, alongside a new component repair centre and a reorganisation of the Naval Sea Systems Command. The order also instructs the Navy to abandon electromagnetic catapults on its newest carriers and return to steam, a decision that has drawn attention from defence analysts.
Behind the tariffs lies a supply problem. US media reported that Trump confronted Defense Secretary Pete Hegseth at Camp David in late July over depleted munitions stocks, after separate reporting suggested the Iran conflict had consumed much of the American inventory. Those accounts have not been independently verified, and the White House denies the exchange took place. Trump has publicly insisted there is no shortage, calling the coverage false.
The proposed US defence budget for next year is around $1.5 trillion (€1.3 trillion). The tariff order is one of several defence measures moving at once, reflecting a broader push to rebuild American industrial capacity in critical military technologies.
For European manufacturers, the immediate challenge is clear: either adapt their supply chains to meet the strict origin rules or face tariffs that could make their products uncompetitive in the US market. The longer-term question is whether this will accelerate the trend of European defence firms setting up production on American soil, further integrating the continent's defence industry with Washington's priorities.
