German launch services provider Exolaunch is working with non-U.S. customers to reclaim most of the tariffs they must pay to deploy their satellites via SpaceX.
U.S. President Donald Trump imposed a 10% tariff on most imports entering the United States April 2, calculated based on the declared value of the goods. Some countries face even higher tariffs or additional trade restrictions.
Arad Gharagozli, CEO of Canada-based satellite startup Galaxia, said his company was recently hit with a 25% duty to ship its first spacecraft to California for a launch this June on a SpaceX rideshare mission.
He said the startup considered canceling the mission while seeking an alternative launch provider, before coming up empty.
“Given the short notice and significant implications of pulling out we decided to absorb the cost and go ahead with the launch,” Gharagozli added.
However, the U.S. Customs and Border Protection (CBP) offers a Duty Drawback program that allows operators to recover up to 99% of the duties paid on goods that are exported or re-exported, including satellites delivered for launch.
Jeanne Allarie, Exolaunch’s chief marketing officer, said the company is managing this process on behalf of Galaxia and other customers using its deployment dispenser for SpaceX’s upcoming Transporter-14 mission.
“It’s not a quick nor easy process, but given the amounts that we’re talking about, it is definitely worth it to our customers,” Allarie said.
The new tariffs also apply to foreign satellites launched from U.S. soil by United Launch Alliance, Blue Origin and others.
They do not apply to Rocket Lab launches from New Zealand, despite the company being based in the U.S., as long as the satellite does not transit through the country. The tariffs would apply if the satellite is launched from Rocket Lab’s U.S. site at Wallops Island, Virginia.