US drone stocks surge after Trump imposes drone tariffs
Shares of Unusual Machines (UMAC) surged 14% on Friday following President Donald Trump's imposition of tariffs on drones and their components, while Red Cat Holdings (RCAT) rose 8%, Ondas Holdings (ONDS) gained 4%, and AeroVironment (AVAV) climbed 2.8%. The tariffs, aimed at bolstering national security and strengthening the domestic drone supply chain, target drones exceeding 25 kilograms or equipped with thermal imaging, as well as docking stations and critical components.
Smaller drones and components face a 25% tariff, with reduced rates for products from certain allies. The tariffs will take effect 21 days for sensitive products and 180 days for less sensitive components. The proclamation also authorizes an onshoring program for companies investing in drone and component manufacturing. The White House emphasized the critical role drones play in modern military operations, noting that reliance on foreign sources poses national security and cybersecurity risks.
Trump signed an executive order in June 2025 to promote U.S.-manufactured drones, ensuring American leadership in drone development and commercialization.
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