Chinese Tariffs and Drones: Staying in the air without breaking the bank

According to the Office of the United States Trade Representative, China was the U.S.’s largest supplier of goods imports in 2018, and electrical machinery accounted for $152 billion in imports that year. Imports from China increased an incredible 427 percent between 2001 and 2018. However, with tariffs on Chinese imports only continuing to rise, most industries are seeing their overhead increase, too.

The drone industry is no exception and, unfortunately, that means – in order to continue delivering the high quality drone work our clients know us for – our prices must increase, too. But there is a glimmer of hope to getting back to normal, as Chinese drone manufacturer DJI seeks to begin manufacturing in the U.S.

What Does This Mean for You, Our Client?

Like you, we want to focus on doing what we love: shooting breathtaking drone photography and videography, aerial mapping and training first responders. Still, we can’t ignore the impact high tariffs on Chinese imports have on our business and businesses like ours around the country. That’s why we’re keeping a close eye on Shenzhen-based DJI’s expansion to the U.S.

But what does this all mean, and what are the implications of DJI building its drones in the U.S.?

DJI’s expansion plan has two major benefits. Amid rising U.S. concerns about security and potential Chinese government surveillance, The New York Times reports, DJI hopes the expansion to Cerritos, California, will build trust with its U.S. partners. Plus, by producing drones in the U.S., DJI will avoid high tariffs. That means lower overhead for us, and lower rates for you.

Sources estimate that between 70 and 80 percent of all drones in the U.S. are supplied by DJI, so we’re excited to see how this move impacts the nationwide drone industry not just in cost effectiveness, but in public opinion of drones – particularly Chinese-made drones – as well.

Life-saving Technology – Assembled in the U.S.

By building drones in the U.S., DJI will meet requirements of the Trade Agreement Act that will allow government agencies to use its products. As it stands, the Trade Agreement Act bars government agencies from using certain products if they aren’t made in the U.S.

Here at Toledo Aerial Media, we train first responders to effectively and safely deploy drones. First responders like fire and police might use drones to assess damage done by a fire or locate a missing person. Once DJI expands to the U.S., thereby meeting Trade Agreement Act requirements, many of our first responder clients will have access to previously inaccessible DJI drone technology.

Evolving So You Can, Too

At Toledo Aerial Media, we’re committed to helping you elevate your business, whether that’s by showcasing what you do through the best drone photography and videography out there, or training your team to take to the skies safely.

If you’re ready to transform your business’s presence through aerial photography or by utilizing aerial thermal imaging, let’s talk. We have the equipment to get your job done, and the certifications and experience to get it done to perfection.