No more American made drones?

[mavic3usa]

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.

Agreed, tariffs alone will not produce this result in the short term. However, the strategy you mentioned above must be supported by subsidies because, after all, if the government is involved then why not go all the way. China does it. The US government would need to subsidize each American drone by $500 to the consumer and $500 to manufacturer to bring that $2000 American drone effectively down to $1000. Not sure how to do it but tax breaks, purchase incentives, rebates, and other types of refunds to the customers and .gov can spend millions in taxpayer money to prop up American drone companies which means you probably have to put up with inferior product quality. Why not? Invite the government into your lives and they never go away, their involvement only increases until the relationship eventually sours and you can't get them to go away, this is what the people are asking for right now. Good luck with that!

 

[Bad Santa]

Call me crazy but the $1150 that I paid for my Mini Pro 4 was my absolute limit on price for something that can malfunction and disappear.

But I'm a cheap bastard. I didn't even pay that much for the car I've been driving for the last 6 years.

 

[Zbip57]

The US government would need to subsidize each American drone by $500 to the consumer and $500 to manufacturer to bring that $2000 American drone effectively down to $1000.

Um, err, huh? With the current tariff, you could have paid $1000 to China for the DJI drone, plus $1450 (145% tariff) as surcharge import tax to your government, total $2450.

Or, per the previous example, you could pay $2000 for an equivalent American drone.

Or, per your math, that $2000 American drone sees the U.S. manufacturer receiving a $500 subsidy from the government, bringing the selling cost down to $1500. You pay that $1500, but get a $500 refund from the government, so it eventually only cost you $1000.

But who paid the $500 + $500 = $1000 to the government so that they could hand that out to the American manufacturer and to you the consumer?

It's YOU, the taxpayer, who funded that $1000 gov't handout. Effectively that drone, which without tariffs would have cost only $1000 from China, still ends up costing Americans double the amount.

Nobody wins with tariffs.

 

[mavic3usa]

Um, err, huh? With the current tariff, you could have paid $1000 to China for the DJI drone, plus $1450 (145% tariff) as surcharge import tax to your government, total $2450.

Or, per the previous example, you could pay $2000 for an equivalent American drone.

Or, per your math, that $2000 American drone sees the U.S. manufacturer receiving a $500 subsidy from the government, bringing the selling cost down to $1500. You pay that $1500, but get a $500 refund from the government, so it eventually only cost you $1000.

But who paid the $500 + $500 = $1000 to the government so that they could hand that out to the American manufacturer and to you the consumer?

It's YOU, the taxpayer, who funded that $1000 gov't handout. Effectively that drone, which without tariffs would have cost only $1000 from China, still ends up costing Americans double the amount.

Nobody wins with tariffs.

Haha, no need to repeat what I said already.

.... and .gov can spend millions in taxpayer money to prop up American drone companies which means you probably have to put up with inferior product quality.

It's the same thing happening in China, you don't believe all these big beautiful DJI drones only cost $1000 and $2000 do you?

Hate to tell you but this is how it's done and this is how the US will do it so American drone companies can be more competitive. Your example says there are $2000 drones for sale to the American people; I just simply pointed out those drones will more like $1000 for sale to the American people. In our country, that's just the way it is. Most consumers don't care how you got there....

 

[Zbip57]

It's the same thing happening in China, you don't believe all these big beautiful DJI drones only cost $1000 and $2000 do you?

It doesn't matter how much it actually costs to make it in China, or whether the Chinese government somehow subsidizes them. The point is that Americans used to able to buy them for $1k. But now, with 145% tariffs, that same drone suddenly costs $2450 in America, with the extra $1450 going to your U.S. tax collector.

Your example says there are $2000 drones for sale to the American people; I just simply pointed out those drones will more like $1000 for sale to the American people.

The difference is, if it actually costs $2000 to make a similar drone within the USA, but now it's your Gov't that somehow subsidizes the sales so it's sold for only $1000 to U.S. consumers, it's still your tax money that's funding that subsidy to make up the $1000 difference.

It's like Trump constantly claiming that his tariffs will make America fabulously rich, because those tariffs are all being collected by the U.S. Treasury. But it's you, the consumer, who is paying those tariffs, not China.

In his first term of office, Trump also applied tariffs against Chinese products, similarly claiming it would make America rich. But, just like they're doing now, China applied strong retaliatory measures against the US, including tariffs on US exports to China like soybeans. Those Chinese counter-tariffs had to be paid by their own Chinese importers of soybeans. And, since the price then became ridiculous, China cut way back on their import of U.S. soybeans, which hurt U.S. farmers.

So, while Trump's tariffs were making America rich from all the surcharge taxes collected from American importers, that money then had to re-applied by the billions to bail out your farmers who were going broke because they could no longer sell their soybeans to China.

Nobody got rich from that failed tariff strategy, just like nobody will get rich this time either (other than his billionaire friends who profited from Trump's deliberate stock market manipulations).

 

[Zbip57]

In our country, that's just the way it is. Most consumers don't care how you got there....

Most Americans don't care to know how tariffs work.

 

[mavic3usa]

It doesn't matter how much it actually costs to make it in China, or whether the Chinese government somehow subsidizes them. The point is that Americans used to able to buy them for $1k. But now, with 145% tariffs, that same drone suddenly costs $2450 in America, with the extra $1450 going to your U.S. tax collector.


The difference is, if it actually costs $2000 to make a similar drone within the USA, but now it's your Gov't that somehow subsidizes the sales so it's sold for only $1000 to U.S. consumers, it's still your tax money that's funding that subsidy to make up the $1000 difference.

It's like Trump constantly claiming that his tariffs will make America fabulously rich, because those tariffs are all being collected by the U.S. Treasury. But it's you, the consumer, who is paying those tariffs, not China.

In his first term of office, Trump also applied tariffs against Chinese products, similarly claiming it would make America rich. But, just like they're doing now, China applied strong retaliatory measures against the US, including tariffs on US exports to China like soybeans. Those Chinese counter-tariffs had to be paid by their own Chinese importers of soybeans. And, since the price then became ridiculous, China cut way back on their import of U.S. soybeans, which hurt U.S. farmers.

So, while Trump's tariffs were making America rich from all the surcharge taxes collected from American importers, that money then had to re-applied by the billions to bail out your farmers who were going broke because they could no longer sell their soybeans to China.

Nobody got rich from that failed tariff strategy, just like nobody will get rich this time either (other than his billionaire friends who profited from Trump's deliberate stock market manipulations).

no one is claiming who'll get rich or not; just showing you how it is possible to have an American drone on the shelf with a $1000 sticker price tag.

 

[Bad Santa]

In reality, I'd be surprised if it cost DJI more than $150 to make a drone.

 

[mavic3usa]

In reality, I'd be surprised if it cost DJI more than $150 to make a drone.

DJI Mavic Air 2 teardown reveals materials cost around $135

Nikkei and Fomalhaut Techno Solutions recently took apart a DJI Mavic Air 2 with the hopes of finding out how the new drone comes in at $799.

dronedj.com

 

[GadgetGuy]

DJI Mavic Air 2 teardown reveals materials cost around $135

Nikkei and Fomalhaut Techno Solutions recently took apart a DJI Mavic Air 2 with the hopes of finding out how the new drone comes in at $799.

dronedj.com

That's why DJI no longer repairs them. They give you a repair quote, send you a brand new drone after you pay the repair quote, and just throw the original one away. Not worth repairing when the cost new is 20% of the sales price.

 

[Slawaw]

So, some smart American entrepreneur starts a new domestic drone production company. But how much will he charge for his new drones.

https://www.reuters.com/business/retail-consumer/lvmh-finds-making-louis-vuitton-bags-messy-texas-2025-04-10/

Which product is more difficult to manufacture - a drone or a leather women's handbag?)
Six years have passed. Can't find any analogies?

 

[Chip]

https://www.reuters.com/business/retail-consumer/lvmh-finds-making-louis-vuitton-bags-messy-texas-2025-04-10/

Which product is more difficult to manufacture - a drone or a leather women's handbag?)
Six years have passed. Can't find any analogies?

By all accounts, your country has done very well developing its own domestic drone industry from scratch. How did you do it? I know incredible grit and toughness in terrible circumstances but was that the main ingredient?

 

[Slawaw]

By all accounts, your country has done very well developing its own domestic drone industry from scratch. How did you do it? I know incredible grit and toughness in terrible circumstances but was that the main ingredient?

Tactical small FPV drones are quite primitive in design. If there is quantity - there will be an effective result. I do not know exactly, but without the help of our allies who supply components, courage and fortitude would not have helped us - we are grateful to them. The combination of the existing engineering school, technical assistance from civilized countries, the education of tens of thousands of operators. Remove any component - everything will collapse.

 

[Slim.slamma]

Too late to converse about it now.