No more American made drones?

[akdrone]

Apparently China has had enough of our stupidity and decided to tighten their own screws. It must makes me chuckle. Skydio (however it's spelled) must be grimmacing. Intensification of the trade war: China blacklists US drone companies

 

[Vic Moss]

Why doesn't that article mention the companies? We know Skydio is on it, but they deserve it. I would imagine brinc is too for the same reason.

 

[spamgnome]

just for fun, take a look at DJI drone prices out there right now.

 

[Mrprop365]

just for fun, take a look at DJI drone prices out there right now.

lol i cant look.....

 

[Capt KO]

Sadly most internal parts of US drones are made in China. Skydio shot themselves in both feet..or brain.

 

[EricJT]

Sadly most internal parts of US drones are made in China. Skydio shot themselves in both feet..or brain.

The law of unintended consequences.

 

[Zbip57]

Why doesn't that article mention the companies? We know Skydio is on it, but they deserve it. I would imagine brinc is too for the same reason.

The article does say,
"Specifically affected by the decision are the US drone companies:
Brinc Drones,
Domo Tactical Communications (DTC),
Firestorm Labs,
HavocAI,
Insitu,
Kratos Unmanned Aerial Systems,
Neros Technologies,
Rapid Flight,
Red Six Solutions,
Skydio and
Synexxus."

 

[MS Coast]

just for fun, take a look at DJI drone prices out there right now.

Are you saying that the prices on DJI's website have increased recently? Or prices on DJI products from US resellers?

 

[GadgetGuy]

Are you saying that the prices on DJI's website have increased recently? Or prices on DJI products from US resellers?

Most everything on the DJI website shows an unchanged price, but listed as "Out of Stock" in red, along with a TIP:

"Your order will be split into multiple separate orders due to some components requiring special handling."

Apparently, by breaking the shipment up into drone components priced less than $800, DJI can bypass either the U.S. Customs holds, or maybe even some tariffs.

 

[Bad Santa]

Most everything on the DJI website shows an unchanged price, but listed as "Out of Stock" in red, along with a TIP:

"Your order will be split into multiple separate orders due to some components requiring special handling."

Apparently, by breaking the shipment up into drone components priced less than $800, DJI can bypass either the U.S. Customs holds, or maybe even some tariffs.

I thought they were also eliminating the $800 exception.

 

[MS Coast]

"Your order will be split into multiple separate orders due to some components requiring special handling."

Apparently, by breaking the shipment up into drone components priced less than $800, DJI can bypass either the U.S. Customs holds, or maybe even some tariffs.

I remember that note being there three years ago, so it's not related to the recent tariff increases.

The sub-$800 de minimis exemption was eliminated for exports from China and Hong Kong as part of the Trump tariff hikes.

 

[Zbip57]

Are you saying that the prices on DJI's website have increased recently? Or prices on DJI products from US resellers?

The price on DJI's website wouldn't change because they continue to sell worldwide at the same price. But the price from your US resellers would need to reflect the increased cost due to the 145% [and ever-increasing] import surtax tariff imposed by U.S. Customs on imported Chinese goods.

The tariffs are paid by your U.S. importer, not by China. Chinese-made drones will cost more to buy within the U.S. The goal of the tariffs supposedly is to hurt China when American consumers decide they can no longer afford to buy drones at those artificially inflated prices.

 

[Bad Santa]

There's a very real possibility that if you order from DJI direct, and they send the drone from China, you will have a bill waiting for you before it will be delivered.

 

[GadgetGuy]

I thought they were also eliminating the $800 exception.

I said "maybe" even some tariffs, but the multiple separate orders has primarily been for bypassing U.S. Customs holds.

The $800 de minimus exception will, indeed, be eliminated, effective May 2nd.

Elimination of De Minimis for Chinese-Origin Goods​

Effective May 2, 2025, the U.S. will eliminate de minimis eligibility for Chinese-origin goods valued under $800. These items will no longer be eligible for duty-free entry into the U.S. regardless of shipping method.

• For imported goods sent through means other than the international postal network, all applicable tariffs and duties will apply.
• For goods sent through the international postal network, a 90% tariff or $75 flat fee per item will apply, which will increase to $150 per item on June 1.

U.S.-China Trade Update: Tariff Escalation and End of De Minimis Exemption - Lathrop GPM

Get the latest news and updates from Lathrop GPM, a top law firm providing legal insights, achievements, and community impact.

www.lathropgpm.com

 

[GadgetGuy]

I remember that note being there three years ago, so it's not related to the recent tariff increases.

The sub-$800 de minimis exemption was eliminated for exports from China and Hong Kong as part of the Trump tariff hikes.

That note now has become reality, based upon recent reports from buyers of received DJI shipments being broken up into drone only, battery only, and RC all deliberately being shipped separately. This was because of the U.S. Customs issues.

The removal of the sub-$800 de minimis tariff exemption for China and Hong Kong does not become effective until May 2nd.

But, yes, DJI is definitely facing some real challenges between U.S. Customs holds and now new tariffs, and expiring sub-$800 de minimis exemptions.

 

[GadgetGuy]

There's a very real possibility that if you order from DJI direct, and they send the drone from China, you will have a bill waiting for you before it will be delivered.

Indeed! Especially with the US Customs holds! LOL!

 

[Kilrah]

The goal of the tariffs supposedly is to hurt China when American consumers decide they can no longer afford to buy drones at those artificially inflated prices.

Well not really, the goal is to enable American companies to start developing / manufacturing / selling drones (or any other impacted goods) locally with the local costs that are inherent to that without being killed dead out of the water because of foreign imports being so cheap they couldn't ever compete.
That comes with its whole host of problems, like the target consumer market being screwed for however many years that takes to happen, if it even ever does.

 

[Vic Moss]

The article does say,
"Specifically affected by the decision are the US drone companies:
Brinc Drones,
Domo Tactical Communications (DTC),
Firestorm Labs,
HavocAI,
Insitu,
Kratos Unmanned Aerial Systems,
Neros Technologies,
Rapid Flight,
Red Six Solutions,
Skydio and
Synexxus."

missed that.

 

[Zbip57]

Well not really, the goal is to enable American companies to start developing / manufacturing / selling drones (or any other impacted goods) locally with the local costs that are inherent to that without being killed dead out of the water because of foreign imports being so cheap they couldn't ever compete.
That comes with its whole host of problems, like the target consumer market being screwed for however many years that takes to happen, if it even ever does.

Sure, that's the stated goal. However...

Let's say previously you could buy a Chinese DJI drone for $1000. Now you're forced to pay an extra 145% tariff in order to import that same drone. To purchase that same drone now, Americans have to pay $1000 + $1450 import tax = $2450.

American drone enthusiasts think that's nuts. We can't afford that. Wouldn't it be nice if there was an American producer making similar quality drones?

So, some smart American entrepreneur starts a new domestic drone production company. But how much will he charge for his new drones. Gee, let's see now, the current market price of drones is $2450. How much can I charge for my new American-made drones? How about "only" $2000? That seems like a real bargain compared to $2450, no?

It's certainly not a bargain compared to the original $1000 from China.

The reason DJI has captured such a huge majority of the drone market is because they produce a high quality product at a reasonable price. So let's say they agree to surrender to America's demands and DJI actually builds a factory to produce their drones right here in the USA. Do you think that same drone can still be produced at the same $1000 price here, in an American factory, using American workers, earning an American wage, compared to what Chinese labourers are paid in China?

Bottom line, these tariffs will not result in lower costs to American consumers.

 

[Kilrah]

Bottom line, these tariffs will not result in lower costs to American consumers.

Nope, but in theory now that there would be more local business, more qualified local jobs, money staying within the country instead of being sent outside wages/standards of living should eventually increase where you can afford those $2450 like you could $1000 in the current "race to the bottom" context. Probably still not what will happen and if it does it'd be long term hence "being screwed for however many years".