SpaceX is asking the Trump administration to help it knock down trade barriers to Starlink, citing the threat of Chinese competitors gaining ground.
In a letter to the US Trade Representative last week, SpaceX warned that the trade barriers could slow and suppress Starlink’s global expansion, potentially handing China a strategic advantage.
“This is a critical moment in the global race to provide satellite internet service, with increasing pressure from China’s state-backed operators trying to overtake US companies in low Earth orbit (LEO) satellite technology,” the company wrote in the letter, which Reuters first spotted.
The main Chinese rival is the Qianfan “Thousand Sails” satellite constellation, which is already trying to expand in over 30 countries. In contrast, Starlink is already in over 125 markets. But in some countries, the company “must pay foreign governments for access to spectrum, import duties on Starlink equipment, and other regulatory fees that substantially increase the cost of operating in these countries—artificially,” SpaceX wrote.
The other problem is that some countries require the company to coordinate sharing radio spectrum with domestic satellite companies, which SpaceX alleges is “clearly a protectionist non-tariff trade barrier that ill-serves consumers and underserved populations.”
“These anti-competitive policies have been used by foreign operators to block or slow SpaceX from providing a better quality and lower cost service to customers in those countries,” it added. The company then called out the trade policies as unfair, saying the US imposes no such restrictions on foreign satellite companies. “Often, these fees, tariffs, and non-tariff trade barriers represent a significant percentage of the total cost of the Starlink equipment,” SpaceX noted.
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The Elon Musk company didn’t propose a specific remedy, except to say foreign markets were using antiquated approaches to regulate satellite equipment. But the letter was sent after the Office of the US Trade Representative made a call for public comments in the agency’s review of unfair trade practices from other countries. The office plans on submitting its report to the President on April 1st, which could recommend additional tariffs.
Despite the letter, SpaceX has been facing some backlash in certain markets due to Musk’s ties to President Trump, who’s been escalating his trade war against Canada and the European Union. This has prompted some countries to search for alternatives, although they’re likely years away.
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About Michael Kan
Senior Reporter
