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US-China trade war
EconomyGlobal Economy

China urges US to drop sweeping drone tariffs, warns of global supply chain fallout

Beijing also hit back at US allegations that Chinese exporters are evading duties, while drone shipments are already under serious pressure

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Chinese companies control an estimated 80 to 90 per cent of the global drone market and dominate the supply of critical components, according to the Washington-based Centre for European Policy Analysis. Photo: Getty Images
Huizhao Huangin BerlinandMia Nurmamatin Hong Kong

Beijing has urged Washington to scrap planned tariffs of up to 100 per cent on imported drones, warning the measures unfairly target Chinese products and threaten global supply chains.

The tariffs are not set to take effect until September 3, but Chinese drone shipments to the United States are already under pressure, with exports of some models plunging in July, the latest customs data showed.

On Thursday, He Yadong, a spokesman for the Ministry of Commerce, said Beijing firmly opposed Washington’s decision to invoke national security powers – specifically Section 232 of the Trade Expansion Act – to levy duties on drones and components, accusing it of applying uneven tariff rates on trading partners.

Warning that the measures would “seriously harm the interests of Chinese companies” and “disrupt cooperation in the global drone supply chain”, He told a regular press briefing that Washington should withdraw the tariffs immediately.

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