Trade Wars Take Flight

Unmanned Aircraft Systems, commonly known as drones, are revolutionizing agriculture with many applications. From crop spraying to real-time data collection and monitoring, these small, but mighty, tools help farmers detect diseases, identify nutrient deficiencies and optimize their operations.

Arthur Erickson, founder and CEO of Hylio, an American-owned and operated crop spraying drone systems manufacturer, predicts that the adoption of agricultural drones will increase rapidly over the next five to 10 years.

“While the market for spray drones is still new, farmers who use them find them indispensable,” he stated. “For our industry, it’s important to have options available to farmers and not rely solely on foreign-made drones for agricultural needs.”

Chinese vs. US-Made Drones

According to Erickson, drones are much more cost-effective than tractors, or other large heavy equipment, no matter where they are manufactured. He explained, however, that Chinese drones are generally cheaper than American-made drones, but they may not last as long and don’t offer the same support and advanced software features.

“We consistently hear from farmers who tell us they researched the DJI products [from China] but would prefer an American-made drone — even if DJI isn’t outright banned with the impending tariffs,” he said. “Farmers want to support American companies. I believe that’s the smarter option overall, for the long term.”

Impact on Tariffs and Trade Tensions

Currently, Congress is discussing countering the CCP Drones Act, which would outright ban Chinese-made drone products in the United States. 

On the other hand, U.S. Customs and Border Protection  has already halted the importation of DJI products, especially their larger agricultural models, citing that China is using slave labor in the Xinjiang province in the western part of that country.

The DJI ban and fear in Washington D.C. regarding Chinese drones are broadly about national security. The concern stems from unregulated foreign-made aircraft flying in the U.S., posing significant security risks.

“It’s less about farming and more about protecting our country from foreign-made aircraft spying on us,” Erickson explained. “Or, at worst, violently attacking us. There are many angles to this issue.”

In comparison, American-made drones, like Hylio, are designed solely for agricultural spraying and farmland data collection.

“Our drones aren’t flying over stadiums of people spying on them, they’re flying over corn,” said Erickson. “We gather data on farm crops, offering information about fungal pressure or weeds, for example. The use of that information is up to the farmer. We’re not gathering facial data and selling it to the NSA [National Security Administration] or anything like that.”

Although tariffs have been mild thus far, Erickson expects them to become more significant as the Trump administration takes office in 2025. From a business standpoint, he doesn’t support an outright ban; but rather, supports tariffs as a protective measure against China’s unfair economic practices.

“Forced labor, for example, is used to artificially lower prices,” he said. “To give American companies, like mine, a fighting chance, and to give American consumers more choices, tariffs are a good protective measure.”

Tariffs on Drone Batteries: An Example

If tariffs are placed on Chinese drone batteries and other electronic devices, there’s a good chance that American-made drone options will become more economically competitive. Whereas in the past, Hylio relied on providing superior technology and excellent customer service — not just being the ‘cheapest’ option on the market.

“The whole point of the tariffs is to make Chinese batteries, which are typically the cheapest in the world, the more expensive option,” explained Erickson. “If this happens, we’ll see Korean-, Japanese- and even American-made batteries become economically viable. We’ll still be able to build the drones; the price of the batteries, however, may go up.”

The Future of US-China Relations

According to Erickson, geopolitical relations between the U.S. and China are pivotal, leading to significant changes in the market.

“With congressional bills potentially eliminating foreign-made drone products, it’s like an act of God,” he elaborated. “One day DJI is here, holding about 80% of the market, and then the next day, that 80% is wide open for everybody but DJI.”

Erickson also stressed that economic warfare is another major factor. He believes the U.S.-China relationship will dictate the future of the drone industry in both countries. This includes geopolitical, military relations and economic warfare.

“We’re not just fighting a physical war; we’re also fighting an economic war.”

With trade tensions and tariffs aside, Erickson is positive America will pull through and provide quality-made drones for farmers and beyond.

“We [the U.S.]  have some of the best engineers, technicians and mechanics in the world,” he said. “We decided years ago to offshore all of our factories to China. Because of that, we’ve shipped off our intellectual property, our innovations and we’re teaching the Chinese how to make our products.

“We know how to do all of this and we can do it again. By leveraging automation, we can provide plenty of jobs for our average blue-collar workers. If we can offer good wages, safe environments and produce thousands, if not hundreds of thousands or millions of drones per year, like China does — just without all the human rights violations — we can do it, and we will do it the right way.”