Bipartisan Legislators Call for Stricter Tariffs on Chinese Drones to Protect Domestic Market
In a bid to protect the domestic drone market and address national security concerns, a group of bipartisan lawmakers has urged the Biden administration to implement stringent tariffs on Chinese-made drones. Led by Rep. Mike Gallagher (R-Wis.), the lawmakers argue that the current 25 percent tariff is insufficient to safeguard the domestic drone industry from Chinese competition. They propose a substantial tariff increase on these products to level the playing field and support the growth of the American drone manufacturing sector.
The lawmakers expressed concern over the Chinese regime’s unfair trade practices, which have allowed Chinese drone manufacturers to dominate the U.S. unmanned aerial vehicle (UAV) market. They argue that these subsidized drones pose a threat to national security by undermining the growth of the domestic drone industry, which plays a crucial role in producing unmanned aerial, surface, and underwater systems for national defense.
Highlighting the impact of Chinese drone dumping on the U.S. market, a whitepaper by the Association for Uncrewed Vehicle Systems International found that Chinese drones accounted for over 90 percent of the U.S. consumer market and 92 percent of the first responder market. This overwhelming dominance has severely affected American drone manufacturers, who have lost significant market share to their Chinese counterparts.
To exacerbate matters, the lawmakers pointed out that Chinese drone exports to the United States have declined due to the existing 25 percent tariff. However, they raised concerns about a surge in Malaysia’s drone exports to the U.S., which went from nearly zero in previous years to 242,000 units in 2022 and 565,000 drones in the first 11 months of 2023. Rep. Gallagher suggested that Chinese drone makers may be exploiting Malaysia as a means to bypass U.S. law through transshipment.
The lawmakers also raised an alarm about potential national security risks associated with Chinese drones. They warned that the Chinese military could exploit data collected by Chinese drones used by U.S. law enforcement and federal agencies to target critical U.S. infrastructure. This concern aligns with previous warnings issued by the FBI and Cybersecurity and Infrastructure Security Agency (CISA), which advised against using Chinese-made unmanned aircraft systems (UAS) in critical infrastructure sectors due to security vulnerabilities.
In addition to urging the Department of Commerce to investigate the impact of importing drones from China, the lawmakers called on the Department of Homeland Security to scrutinize Chinese drone manufacturers and determine whether they utilize third countries to evade U.S. tariffs.
Chinese-made drones have been under scrutiny from both Washington lawmakers and the administration. In 2019, Congress banned the Pentagon from purchasing or using drones and components manufactured in China. The U.S. Department of Justice (DOJ) also prohibited the use of its funds to procure Chinese drones, citing concerns about foreign government influence. Furthermore, a bipartisan group of U.S. lawmakers requested an investigation and potential sanctions on Autel Robotics, another Chinese drone maker, in November 2023.
The Biden administration now faces mounting pressure to take action against Chinese-made drones to protect American interests. As the domestic drone industry continues to face challenges from subsidized Chinese competition, the implementation of stricter tariffs could provide much-needed support for American drone manufacturers and bolster national security efforts.
