Gallagher, Bipartisan Lawmakers Call for New Restrictions and Tariffs to Protect Against Threats Posed by Chinese Drones
WASHINGTON, D.C.-- Chairman Mike Gallagher (R-WI) and Ranking Member Raja Krishnamoorthi (D-IL) of the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party today wrote to the Biden administration, calling for immediate action to counter the malign trade actions of drone manufacturers in the People’s Republic of China (PRC). Companies like DJI and Autel Robotics receive immense subsidies from the Chinese government, enabling Chinese drone makers to overtake 77 percent of the U.S. hobby drone market and over 90 percent of the U.S. commercial drone market.
In the letter to Secretary of Commerce Gina Raimondo, Secretary of Homeland Security Alejandro Mayorkas, and U.S. Trade Representative Katherine Tai, the lawmakers called for higher tariffs on Chinese drones, stronger enforcement against PRC drone manufacturers using third countries to evade tariffs, and restrictions on U.S. federal funds being used to purchase Chinese drones. The lawmakers also note the national security risks posed by Chinese drones collecting U.S. data for use by the PRC military and intelligence services.
The letter was also signed by Select Committee members Reps. Rob Wittman (R-VA), Seth Moulton (D-MA), Rep. John Moolenaar (R-MI), Ro Khanna (D-CA), Darin LaHood (R-IL), Haley Stevens (D-MI), Jim Banks (R-IN), and Ashley Hinson (R-IA). Reps. Elise Stefanik (R-NY), Lloyd Doggett (D-TX) and Dina Titus (D-NV) also joined.
The lawmakers wrote, “We believe that the current Section 301 tariff of 25% on UAVs from the PRC is inadequate for protecting the ability of American domestic innovators and manufacturers to produce the drones needed to satisfy U.S. national defense requirements. We call on the Department of Commerce to initiate a Section 232 investigation to determine the effects of UAV imports from the PRC…. In addition, it is our hope that USTR’s pending four-year review of the Section 301 tariffs will determine that the current tariff rate on PRC imports of UAVs is inadequate and that a substantially increased duty on these products is warranted to help protect U.S. manufacturers in this critical industry.”
The lawmakers continue, “We call on the Department of Homeland Security... to determine if PRC UAV firms are engaged in transshipment through Malaysia and other third-party countries in an attempt to circumvent U.S. tariffs… In addition to strengthening protective measures against unfair PRC competition, it is critical that the United States develop a commercially viable domestic drone industry. Restrictions on using federal funds, including grant programs to state and local governments, to purchase PRC drones would be one critical step to encourage the growth of the United States’ domestic drone sector.”
The bipartisan coalition of lawmakers requested that each department brief legislative staff on the actions the executive branch is taking to combat PRC drones from overtaking the U.S. market.
View the lawmakers' letter HERE or continue reading below.