Taiwan's drone industry adapts to US security concerns and the war in Ukraine

Taiwan's drone industry is adapting to a new US national-security trade law, as well as shifting trade patterns tied to the war in Ukraine and concerns over China's control over the global drone industry.

Taiwan's Ministry of Economic Affairs (MOEA, 經濟部) has told drone and drone-parts exporters to ready paperwork for a lower US tariff rate that can't yet be claimed. In a notice forwarded on Oct. 27 by the Taiwan Association of Machinery Industry (TAMI, 臺灣機械工業同業公會), the ministry asked firms to build a bill of materials and a software list, and to keep invoices, customs declarations, bills of lading and payment records. The aim is to protect their future claim to the lower rate and to refunds.

The rate comes from a US presidential proclamation of Aug. 13 under Section 232, a national-security trade law. From Sept. 3, it set tariffs of 100% on drones over 25 kg (55 pounds), drones with thermal imagers, docking stations and some critical components, and 25% on other drones. Products of Taiwan, Japan, the EU and a few others pay no more than 15%, but only if importers certify that "substantially all the critical components and technology" come from the US or listed partners.

The rules matter for Taiwan's drone push, though the US is not its biggest market. Taiwan's exports of complete drones to all markets reached US$212 million in the first half of 2026, more than double the US$93 million for all of 2025, MOEA has said. In the first quarter, the Czech Republic took about US$100 million of the US$115.9 million total and Poland about US$11.8 million, according to MOEA figures reported by the Central News Agency (中央社) in April. Days later, MOEA ranked the US third among destinations, the agency reported.

Much of the European demand comes from the war in Ukraine. DSET, a Taiwan government-backed think tank, says most drones shipped to the Czech Republic and Poland were meant for Ukraine, many of them bought by charities and donated. Because Ukraine does not formally recognize Taiwan, the trade runs through other countries, CNA reported. In the US, Taiwanese makers are selling “non-red” drones and parts to buyers wary of Chinese suppliers, AFP reported, helped by US defense legislation and a new certification route for Taiwanese drones.

Sources: 臺灣機械工業同業公會 TAMI (relaying MOEA notice), The White House (Proclamation 11055), U.S. Customs and Border Protection (CSMS # 69738151), 鉅亨網 Anue [1], [2], 中央社 Central News Agency [1], [2]

Editor: Ian Lamont