TNB Tech Minute: Trump Administration Announces New Drone Tariffs

**SPEAKER_1** (0:01)
Countless companies invest in AI tools without tying them to tangible business outcomes. Join McKinsey later to learn how leaders rewire their organizations for sustained impact and value.

**Danny Lewis** (0:15)
Here's your morning TNB Tech Minute for Friday, August 14th. I'm Danny Lewis for the Wall Street Journal. President Trump is introducing a new slate of tariffs targeted at imported drones and their components, particularly those from China. According to the proclamation, the duties are tiered according to drone capacity and their place of origin. Large drones with militarily sensitive abilities are subject to a 100 percent tariff, while smaller drones and components without the same national security implications face a 25 percent levy. US allies will have lower tariff rates. In a statement, the White House said the new tariffs would protect US national and economic security as it looks to counter Chinese dominance in the commercial drone market. The decision boosted shares of US-based drone companies in morning trading.
Chinese AI firm DeepSeek is hiking prices for its flagship models amid fierce competition. According to a post on its website, DeepSeek's new peak hour pricing will rise over four times current levels starting August 16th, though its latest pricing remains well below its US and Chinese rivals. The company is in talks with prospective investors for a new fundraising round after it raised more than $7.4 billion in June, and is planning to go public in Shanghai as early as next year.
And social media platform Reddit is joining the S&P 500 S&P Down Jones Indices, which reviews the make-ups of various indexes, says Reddit will replace Avalon Bay Communities, a real estate investment trust being bought by fellow S&P 500 member Equity Residential, creating a vacancy in the index. Reddit shares are up more than 13 percent in morning trading.
That's your TNB Tech Minute. Join us again this afternoon for more.

**SPEAKER_1** (1:56)
True AI value comes from rethinking workflows, not just layering on tech. Here's Dan Swan, Senior Partner at McKinsey.

**Dan Swan** (2:02)
When we talk about rewiring, we're more talking about getting into the chassis of the organization. And that means, yes, there's technology to it. But how are you redesigning the organization or the capabilities of the people that are actually doing the work and linking that to the technology? So for us, the technology, yes, is critically important, but these other pieces are 70-80% of the work to get that right.