US tariffs add financial pressure to UAM sector, says new report 

Urban Air Mobility (UAM) developers are grappling with increased costs and shifting supply chain strategies following new US tariffs on critical imported subsystems, according to a recent report by MarketandMarkets. 

The report estimates that the tariffs have pushed up costs for essential components—including batteries, power electronics, and lightweight material—by 10-20%. 

The US government recently imposed new tariffs targeting high-tech imports and critical hardware such as electronic systems, propulsion components, and advanced composite materials.

These components are vital to the development of electric vertical take-off and landing (eVTOL) aircraft. 

“These tariffs are adding cost pressures and causing strategic ripples across the UAM ecosystem,” the report notes, pointing to manufacturers, avionics suppliers, battery manufacturers, and infrastructure developers as all being affected. 

Many eVTOL manufacturers are now reassessing their sourcing strategies, with some shifting toward onshore ot nearshore battery pack assembly. 

Additionally, there is increased interest in sourcing battery cells from non-tariffed countries such as India and those in Eastern Europe. 

Certification delays and infrastructure revisions loom

Furthermore, the financial strain is particularly acute for early-stage UAM companies, some of which have delayed pre-commercial deployments due to budget overruns. 

To mitigate exposure, some manufacturers are reportedly exploring joint ventures with domestic suppliers as part of efforts to meet localization targets and stabilize costs. 

Meanwhile, infrastructure developers—particularly vertiport operators—are revisiting capital expenditure plans to account for higher prices on imported systems such as charging infrastructure and digital air traffic management tools. 

Moreover, these supply chain constraints could have wider implications. Certification efforts led by the Federal Aviation Administration (FAA) may face delays if aircraft systems need to be redesigned around alternative components. 

The report highlights the critical nature of many of these affected subsystems. Lithium-ion and solid-state batteries—core to eVTOL powertrains—are predominantly sourced from South Korea, China, and Japan. 

Lightweight composite structures, propulsion motors, and flight sensors are procured from a global supplier base, while avionics and autonomous systems frequently depend on semiconductors manufactured in Asia and Europe.

Despite these headwinds, the US UAM market remains on a strong growth trajectory. It was valued between $1.2 billion and $1.6 billion in 2023, buoyed by public-private pilot programmes in cities like Los Angeles, Miami, and Dallas. 

However, the rising cost of critical imports could slow the pace of development if companies are unable to absorb the additional financial burden or adapt their supply chains fast enough.