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China urges US to drop sweeping drone tariffs, warns of global supply chain fallout

Beijing has urged Washington to scrap planned tariffs of up to 100 per cent on imported drones, warning the measures unfairly target Chinese products and threaten global supply chains. The tariffs are not set to take effect until September 3, but Chinese drone shipments to the United States are already under pressure, with exports of some models plunging in July, the latest customs data showed.…

China urges US to drop sweeping drone tariffs, warns of global supply chain fallout

China has urged the United States to abandon proposed tariffs of up to 100 percent on imported drones, warning that such measures unfairly target Chinese products and pose a threat to global supply chains. The tariffs, set to take effect on September 3, have already caused concern, with exports of certain drone models to the US falling sharply in July, according to the latest customs data.

He Yadong, a spokesperson for China's Ministry of Commerce, said Beijing strongly opposes Washington's decision to use national security powers under Section 232 of the Trade Expansion Act to impose duties on drones and components. He accused the US of applying non-uniform tariff rates on trading partners, stating that the measures would "seriously harm the interests of Chinese companies" and "disrupt cooperation in the global drone supply chain".

He called on the US to withdraw the tariffs immediately. The majority of Chinese drones exported to the US are used for civilian purposes such as agriculture, equipment inspection, and the film and entertainment industries. The US imposed a 100 percent tariff on drones over 25 kg, as well as those with thermal-imaging technology and specific critical components, while smaller drones face a 25 percent duty.

Chinese drones account for an estimated 80 to 90 percent of the global market. Despite their dominance, Chinese drone exports to the US fell by 82 percent in July compared to the previous year, while exports of smaller camera drones dropped by 50 to 70 percent. These declines came despite surges in exports of related drone components.

Beijing tightened export controls on the drone supply chain on August 5, subjecting shipments to "strict case-by-case scrutiny". A White House report released last week alleged that Chinese exporters were involved in a "Great Transshipment Scam", diverting goods through multiple countries to conceal their origin. He Yadong dismissed these claims as disregarding facts and falsely portraying regular international trade as a "scam".

He maintained that the high and uneven tariffs imposed by Washington were the main threat to global supply-chain security.

Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

Read the original at scmp.com →

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