EHang confirms US tariffs will not impact operations
April 18, 2025
Chinese eVTOL company EHang has confirmed that “recent tariff developments between China and the United States are not expected to have any material impact on the Company’s operations,” despite recent short-term price share fluctuations prompted by global market volatility. (Over the past month, EHang’s stock has fallen by close to 40%).
In a statement on 4 April, EHang noted that recent tariff measures announced by both governments are not anticipated to affect its operations; clarifying that it does not rely on components originating in the US. “We do not use US-restricted semiconductors, aerospace components, or other controlled technologies,” said EHang. “Our supply chain remains secure and independent, ensuring no operational disruption due to trade policy changes”.
On 2 April, Donald Trump’s announcement of a new 10% minimum ‘baseline tariff’ rate on almost all foreign imports into the US was notably augmented by a 104% levy on Chinese goods. In the ensuing weeks, evolving tariff uncertainty has continued to impact market confidence and cause concern for manufacturers, with US tariffs on Chinese-made goods subsequently jumping to 145%.
To date, EHang is the only manufacturer to secure eVTOL certification, achieving a type certificate from the Civil Aviation Administration of China (CAAC) for its two-seat, autonomous aircraft in 2023. Last month, EHang also received its inaugural long-awaited Air Operators Certificate (AOC), enabling it to commence tourism flights in conjunction with subsidiary Guangdong EHang General Aviation and joint venture partner Hefei HeYi Aviation.
However, with the EH216-S yet to receive type certification outside of China, EHang does not export products to the US; generating 95% of its revenues from the domestic market in 2024. Furthermore, “with localised production capabilities and a growing international presence across Asia, Europe, and other markets, EHang remains well-positioned to maintain business continuity and pursue long-term growth,” added the company.
In January 2025, EHang reported its revenues for fiscal year 2024 are expected to reach £50 million, a 287% year-on-year increase, which it attributed to stronger than expected market demand for its EH216-S. “The Company will continue to closely monitor international trade dynamics and adapt proactively,” concluded EHang.
