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DJI raises prices in the US due to Trump’s tariffs on Chinese goods

by 10 Comments

The Trump administration’s latest round of tariffs applies 15 percent tax on goods imported from China. The decision took effect this Sunday, and in response, DJI has raised prices in the US by roughly 13 percent.

 

The price changes were first spotted and by DroneDJ. Some drones are out of stock on DJI’s official website, and the prices have gone up for others. The prices have increased by roughly 13 percent for the Mavic line. For example, DJI Mavic Air Arctic White went from $799 to $919. DJI Mavic 2 Pro went from $1,499 to $1,729. The Verge adds that prices for Inspire and Matrice 600 Pro have increased by nearly 17 and 14 percent respectively, compared to the prices in Canada.

A DJI spokesperson confirmed to The Verge that the price increase is a consequence of the recently increased tariffs. “We take many factors into account when recommending retail prices in different countries around the world, including tariff applications, tax rates and currency exchange fluctuations,” they explained. “We follow all applicable laws and regulations in the countries where we operate and will continue to work toward making drone and handheld products more accessible to the world while supporting the many existing customers that use DJI technology daily.”

I believe that the price increase was a logical and expected move from DJI after the new tariffs have been applied. Sadly, the cost of these tariffs has been passed onto consumers. The Verge notes that this is the first reported case of a Chinese gadget manufacturer doing so, but there are likely more to come.

However, if you want to buy some DJI gear at old prices, you still have a chance. While the drones have already got more expensive on DJI’s website, you can still find them at pre-tariff prices on Amazon. Some drones are out of stock in DJI’s official store, but you can find them at other retailers. For example, the DJI Mavic 2 Pro is still $1,499 and the Mavic Air (Onyx Black) is $769, and it’s not available in DJI’s store at the time of writing this. The same goes for B&H, where the prices have remained unchanged and there’s a larger choice of DJI drones available. I guess that, when they’re out of stock, these retailers will increase prices, too.

[via The Verge]

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  • or to cover the $150 million fraud from their own employees…
    In a statement sent to Engadget, the company said that some of its 14,000 employees had been inflating the cost of parts and materials for financial gain.

    https://www.theverge.com/2019/1/21/18191391/dji-fraud-150-million-dollars-1-billion-yuan

    • Marko

      Forgive me but I don’t believe you understand how tariffs work. DJI did not increase their prices, DJI USA increased their prices. This 15% difference is not going to DJI pocket. It goes into your government’s pocket. The US government. Tarifs are import duties that the importer has to pay in order to enter the goods to the US.

      • Sorry, not what the article says here.
        DJI raise price in the USA is not the same that DJI USA raise price.
        Price raise in Chinese good are logical after import taxes raise; It should have not been done by the brand itself.
        Also, the original article announce that drone stock will now be limited on many DJI products in the USA which make not so sens if I put only taxes in the balance.
        (no more DJI Spark or Phantom 4 for the USA?! import taxes?)

        So, I will not link all this on import taxes but more commercial PR stunt between US and China.

        • Marko

          It is the same. The increase in price is not because DJI increased their FOB prices but it is the added duties that your government now apply. DJI has nothing to do with it.

          The article says: “I believe that the price increase was a logical and expected move from DJI after the new tariffs have been applied”.

          This is not only inaccurate but quite dumb statement in my opinion, DJI did not increase prices in their factory, the DJI importer and distributor in the US is increasing prices.

          You do understand that ‘tariffs’ are import duties and have nothing to do with cost price, right? You, the American consumer, pays those duties, not China or the Chinese manufacturer. Cost price from the factory stays the same but the retail price is now higher due to YOUR import duties.

          • Sorry, I live in China, so, yes, I know about BS from DJI and the way PR works more than market/import taxes.
            Why such article is online shared by many website is already a good indication; Should we have an article for each of the Chinese good imported in the US which will have extra cost?
            or…

          • Marko

            It could very well be some BS from DJI in China but why hurting a huge market? It will not benefit them.

            Just checked and on Amazon.com the DJI Mavic 2 Pro is still $1,499 and the DJI Mavic Air Arctic White is $789 and that’s with the Fly More kit.

  • Marko

    DJI did not increase their prices, DJI USA raised their prices. And what were they suppose to do? The distributer in the US now pays 15% more in taxes, they have to recuperate it. As you mention, in Canada the price (after conversion) is still the same as it was before.

    “… Sadly, the cost of these tariffs has been passed onto consumers…” Well, this was always the case when it comes to duties. When an importer brings in goods they have to calculate their wholesale price based on: cost of goods, shipping and duties (or tarifs). Wholesale price and suggested retail prices has to include all that or they will be out of business really fast.

    One thing Trump did well is calling it tariffs instead of calling it by its true name: duties. Most Americans truly believe that China pays those duties, not realizing they themselves pay the duties.

    In a recent trip to Florida my wife and I went into a Walmart store looking for a bluetooth adapter. We realized that many of the goods there were already more expensive than they are at home (Canada).

    And apparently it’s not going to end anytime soon. What Chinese companies do now it seems, is to develop their markets in European Russia and especially Africa and the Mid-East. America’s strength was always its market size. Countries and companies caved to pressure by the US knowing their business there would suffer if they did not.

    At one point it might become cost effective to stop listening to US direction. It might take years but the way it looks now, it is inevitable. Companies (all over the world, not only China) will realize they should develop other markets other than the US so they don’t find themselves in the same position as China. The US might not have the same bargaining power as it has now.

  • I was thinking about getting a drone. Not now.

  • Richard Gerdeman

    Prices went up here in Italy. No Trump here…wish there was however.

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