US FCC Bans New DJI Drone Imports, Spurring Retail Shortages and Domestic Production

The United States has effectively banned new drones from DJI, the Chinese company that dominates the global consumer market, by adding it to the FCC's Covered List in December 2025. This move blocks fresh imports and FCC approvals for DJI models, choking supply chains and leaving U.S. retailers unable to restock popular lines like the Neo, Mavic, and Mini, even as existing authorized models remain legal for now.

DJI, long the world's leading drone maker, now faces restrictions from both superpowers. On May 1 in Beijing, staff at its flagship store cleared shelves of every major model, signaling compliance with China's own curbs amid escalating U.S.-China tensions. According to reports from The Next Web, this double squeeze stems from national security concerns: Washington views DJI as a potential data threat linked to the Chinese Communist Party, while Beijing pressures the firm over export controls imposed since 2020, including accusations of complicity in Uyghur oppression and military aid.

The ban's impact hit hard throughout 2025, with U.S. Customs delaying shipments and the FCC suspending new authorizations as early as spring. By July, DJI drones became nearly impossible to find in American stores, creating widespread shortages months before the formal listing. DJI has pushed back forcefully, calling the measures "baseless allegations and xenophobic fear" and highlighting validations of its data security by U.S. agencies since 2017.

American drone makers, meanwhile, lack a ready alternative to fill the void left by DJI, which powers over 75% of U.S. drones. Skydio, the largest domestic producer, announced in late April a massive $3.5 billion investment over five years to scale up. This includes a factory five times larger than its current one, over 2,000 direct jobs, 3,000 supplier roles, and a full domestic component supply chain, as detailed by The Next Web.

The policy carries bipartisan support, blending tariffs, incentives, procurement shifts, and regulations to spark a U.S. drone manufacturing boom. Federal tax breaks and subsidies are expected to bolster firms like Skydio, prioritizing American-built systems for national security and job creation.

Consumers, hobbyists, farmers, filmmakers, and public safety agencies reliant on affordable, high-performance DJI drones face immediate disruptions and higher costs from pricier U.S. options. What happens next remains uncertain: DJI could pivot to other markets, U.S. production ramps up slowly amid supply chain hurdles, and ongoing audits—like a 2025 economic security review—may tighten rules further under Section 232 import authorities.

This clash underscores broader U.S.-China tech decoupling, affecting a vital industry for everything from disaster response to agriculture. While the ban aims to safeguard data and infrastructure, it risks slowing innovation and raising prices until domestic capacity catches up.