Continuing our series on global trade dynamics affecting drone users, this post focuses on how tariffs and policy tensions are playing out in the utility sector.

United States

Utilities – think power companies, telecom firms, railroads, and oil & gas pipelines – were early adopters of drones because they have miles of infrastructure to inspect. Instead of sending crews walking along power lines or climbing cell towers, a drone can do a quick, safe fly-by to check for damage or maintenance needs. Drones used in this sector range from off-the-shelf quadcopters with a good camera to more specialized birds with infrared cameras or even LiDAR for 3D mapping. DJI’s industrial-grade drones (like the Matrice 300 RTK with a Zenmuse thermal camera) became a popular choice for many utility companies due to reliability and a rich ecosystem of sensors.

Now, with the trade war, U.S. utilities are in a tricky position. First, the cost issue: just as with other drones, tariffs are inflating prices of the equipment. A utility that planned to buy 50 new drones for its inspection team might only afford 25-30 if each unit costs nearly twice as much after tariffs. Maintenance budgets are hit too – replacing a cracked camera gimbal or ordering new battery packs is costlier, which could lead to delays in repairs or fewer spares on hand.

Second, and perhaps more critical for utilities, are the security and regulatory pressures. The U.S. government considers critical infrastructure a sensitive area. There have been warnings (though not definitive public evidence) that Chinese-made drones could potentially transmit data back to their manufacturers or be manipulated to spy on critical sites​. Whether or not these claims hold water, the perception alone is pushing utilities to reconsider their heavy use of Chinese drones. Some U.S. states or federal agencies have strongly advised critical infrastructure operators to avoid Chinese tech. So an electric utility might feel indirect pressure (or internal policy) to phase out DJI drones simply to align with national security sentiment. In Florida’s case, even agencies like forest services and emergency management had to ground DJI drones, which impacted their ability to quickly assess hurricane damage to power lines​.

This has utilities looking at alternatives – and that’s not easy. American or allied-made drones in this space include offerings like the Skydio X10 (an enterprise variant of Skydio with thermal imaging), Parrot ANAFI USA (which has a thermal camera too), and a few specialist manufacturers like Freefly Systems or Harris Aerial that make heavy-lift drones for custom sensors. Some utilities have even sponsored development of custom drones via startups or collaborations with universities. But switching over is slow. A drone program at a utility isn’t just hardware; it’s also training pilots, integrating with maintenance databases, etc. If a utility has hundreds of trained DJI pilots and a workflow built around DJI data formats, moving to a new platform is a significant endeavor. Nonetheless, we’re seeing some utilities start dual-fleets: keeping their existing DJI fleet for non-sensitive work (or until end-of-life) and gradually introducing a second fleet of “approved” drones for high-security tasks.

On the supply chain front, utilities are concerned about reliability. The worst-case scenario is having an important inspection delayed because no replacement drone is available after an accident. The trade war-induced scarcity or delays of Chinese drones could mean a utility company has to ground inspection schedules – potentially missing a chance to spot a problem before it causes an outage. This has driven interest in stocking up on key components and even using predictive maintenance software more, to minimize surprises. Some are investing more in software that can do more with fewer flights, for example using AI to analyze images so thoroughly that you don’t need as many repeat flights (reducing wear and tear on the limited hardware).

One tangible effect of tariff pressure: companies providing inspection services (as contractors to utilities) have raised their rates due to higher drone operation costs​. Large utilities often outsource tasks like monthly pipeline patrols or wind turbine blade checks to specialized drone service firms. Those firms are now charging more, citing increased equipment and insurance costs in this uncertain environment. It’s a cost that could eventually trickle down to consumers in the form of slightly higher utility bills, albeit it’s a very small factor compared to, say, fuel costs. Still, it’s interesting that a geopolitical trade war might ultimately mean you pay a few cents more on your electricity because the utility had to spend more on drone inspections.

China

Chinese utility companies (state grid, telecom providers, etc.) also make heavy use of drones for inspections. The difference is, they exclusively use Chinese drones and solutions, so they are quite insulated from international trade disputes. Dajiang (DJI) and other domestic industrial drone makers supply Chinese utilities with custom solutions – for instance, there are drones equipped with ultraviolet corona cameras used to detect electrical discharge on high-voltage lines, and these are sold by Chinese firms. The Chinese government itself has pushed utilities to modernize and adopt new tech, so drones are pretty standard toolkit items there.

The trade war doesn’t stop Chinese utilities from getting hardware, but if Chinese drone companies face tech restrictions, it could marginally affect them. For example, if a Chinese drone maker was using a high-end infrared sensor from a U.S. company for a particular camera, and now can’t get it due to sanctions, they’d have to find an alternative (maybe a European or domestic sensor). So far, there’s no sign of major disruptions – Chinese industry is adept at filling these gaps.

One could argue Chinese utilities might gain a competitive edge internationally; for instance, if they want to offer expertise or services abroad (some Chinese state companies work on infrastructure in Africa, Asia – they might bring their drones along). Those drones are readily available to them, whereas Western competitors might have to navigate the trade minefield.

Related Reading: Thermal Imaging Best Practices For Industrial Inspections With DJI Drones

Europe

European utilities sit somewhere between the U.S. and China scenarios. They use a lot of Chinese-made drone tech for inspections, but also have some European-made specialized drones. The absence of an outright ban means European power and telecom companies still fly DJI drones for many tasks – inspecting solar farms, checking wind turbine blades (often done by DJI drones with high-zoom cameras), surveying railway tracks, etc. For critical national infrastructure in Europe, there is some caution; for instance, French electricity grid operators have tested Parrot’s ANAFI drones for certain projects to ensure data security (Parrot emphasizes that its Anafi USA has secure data encryption and no data sent to servers). But broadly, Europe has not restricted Chinese drones in utilities the way the U.S. is moving toward.

However, European utilities are not immune to the trade war side effects. As mentioned before, if DJI has any production or shipping hiccups, that can affect European operations. Also, Europe’s own drive for technological sovereignty means utility companies are interested in supporting European drone makers. There are a few notable ones: Quantix (a VTOL drone used for agriculture and maybe utility, from AeroVironment, which is actually U.S.-based but sells in Europe), Percepto (an Israeli company making autonomous drone-in-a-box systems used for industrial site inspections – Israel is an ally and not subject to these tariffs). European companies might lean more on these non-Chinese systems for critical sites over time, especially if transatlantic pressure mounts to exclude Chinese gear from critical infrastructure.

From a cost perspective, European utilities currently don’t have to pay inflated prices due to tariffs on drones. In fact, they might be somewhat benefitting: if DJI or others, facing U.S. tariffs, quietly adjust pricing strategy, they might keep European prices competitive to maintain those markets. Also, the Euro (or other currencies) vs. Chinese Yuan exchange can influence cost independently of tariffs. These financial nuances aside, a European utility manager likely isn’t seeing the kind of budget spikes their American counterpart is for the drone program.

One thing European regulators are working on is standardizing drone usage in inspections – like creating guidelines so that data collected by drones on infrastructure is secure and reliable. If any rule changes come, they might revolve around data handling rather than outright drone sourcing bans.

Also Read: Drones Are Taking Over Cell Tower Inspections—See How You Can Earn From It

FAQ: How Tariffs and Trade Wars Are Affecting Drone Utility Inspections

Why do utilities use drones for inspections?

Drones offer a safer, faster, and more cost-effective way to inspect infrastructure like power lines, pipelines, and telecom towers. Instead of sending workers to climb or walk miles of equipment, drones can do quick fly-bys and capture detailed data.

How are tariffs making it harder for utility companies to use drones?

Tariffs have nearly doubled the cost of drones and replacement parts, forcing some utilities to cut down on the number of drones they buy or delay maintenance due to high costs.

What’s the issue with using Chinese-made drones?

The U.S. government considers drones from Chinese companies like DJI a potential security risk. There’s concern that these drones could transmit data back to foreign servers, even though definitive proof hasn’t been shared publicly. Still, the fear alone is pushing many utilities to look for alternatives.

Are there any approved alternatives to DJI drones?

Yes. Utilities are exploring U.S. and ally-made drones like the Skydio X10, Parrot ANAFI USA, and custom-built drones from firms like Freefly Systems. But switching isn’t simple because it also means retraining staff and reworking software systems.

What are utilities doing to transition away from Chinese drones?

Some are running dual fleets—keeping existing DJI drones for low-security work while slowly introducing non-Chinese drones for sensitive sites. This way, they balance continuity and compliance.

How are inspection services being affected by rising drone costs?

Companies that provide drone inspections are charging more due to higher operating costs. These fees may eventually show up as slightly higher utility bills for consumers.

Are these challenges unique to the U.S.?

Not entirely. European utilities also rely heavily on Chinese drones but face less pressure to switch. However, there’s growing interest in European or allied alternatives due to data security and tech sovereignty.

What about China? How are their utilities handling drones?

Chinese utilities use domestic drones and face fewer restrictions. Their drone programs are well-supported by the government, and they have access to advanced features like ultraviolet corona cameras.

Are U.S. utility inspections being delayed due to these issues?

Sometimes. If a drone is damaged and parts are hard to get due to tariffs, inspections can be postponed. This creates a risk of missing maintenance problems that could cause outages.

How are utilities trying to stay ahead despite these problems?

They’re stocking up on key parts, investing in AI software to reduce flight frequency, and adopting predictive maintenance tools to better plan inspections and repairs.

Could these problems increase what I pay on my power bill?

Possibly, but only slightly. While drone inspection costs have gone up, they’re still a small part of the overall utility budget. Still, trade war ripple effects could add a few cents to your bill over time.