For China, Trump’s new drone tariffs threaten to deepen trade rift with US
Tariffs of up to 100 per cent that Washington has announced on imported drones would result in a “lose-lose outcome” for the United States and China, analysts said, as the technology is increasingly taking centre stage in the countries’ tech and trade rivalry. The new levies will further complicate manufacturers’ efforts to shift production to third countries or regions, where supply chains are…
China and the United States are facing a trade rift as Washington announced tariffs on imported drones, with up to 100% levies threatening a "lose-lose outcome" for both nations. Analysts explained that this new levy would further complicate manufacturers' efforts to shift production to third countries, as supply chains are already affected by earlier trade restrictions.
In response to Beijing's tightening of drone exports to the US, the Ministry of Commerce imposed stricter case-by-case reviews on exports of drones, components, and related technologies. The US Federal Communications Commission also added foreign-produced unmanned aircraft systems and critical components to its Covered List, effectively blocking new products from entering the US market.
The tariffs are targeting Beijing primarily, as Chinese drone and robotics makers currently dominate the global market. Chinese companies, including industrial giant DJI, control an estimated 80 to 90% of the global drone market and supply critical minerals, raw materials, and components for drone manufacturing. This new trade restriction could significantly disrupt Western drone manufacturing, with DJI not immediately responding to a request for comment.
Although the tariffs may benefit US manufacturers, they will also increase costs for customers across commercial, government, and military applications. As Chinese companies look to mitigate risks, they may explore overseas assembly and relocate supply chains to politically friendly countries.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
