An unmanned aerial vehicle at the AeroVironment Inc. booth at the Special Operations Forces Industry Conference on May 17, 2022 in Tampa, Florida.
Luke Charette Bloomberg | Getty Images
Drone stocks rose on Friday after President Donald Trump announced import tariffs aimed at boosting U.S. manufacturing and protecting national security.
unusual machine Although it increased by 25%, red cat It rebounded by about 8%. aviation environment and Kratos I also climbed.
“U.S. drone production must rapidly expand to ensure America’s national and economic security,” the White House said in a release, adding that outsourcing components raises serious national security and cybersecurity concerns.
The White House said the tariffs will protect America’s national security and defense industrial base while creating new jobs.
The directive imposes a 100% tariff on large drones with “sensitive” military capabilities such as thermal imaging, and a 25% tariff on smaller drones without such capabilities. President Trump imposed a 15% tariff on drones and parts from the European Union, Japan, Liechtenstein, South Korea, Switzerland, and Taiwan, and a 10% tariff on drones and parts from the United Kingdom.
Unusual Machines, which makes drones and drone parts, added the president’s son Donald Trump Jr. to its advisory board in November 2024. Trump Jr. holds 331,580 shares of the company’s stock as of November 27, 2024.
The United States is seeking to expand domestic drone production and reduce its dependence on outsourcing components, particularly from China, which has long dominated the drone market.
The effort comes as part of President Trump’s broader plan to reindustrialize the U.S. military and expand its defense capabilities.
Earlier this year, the Trump administration launched a $1 billion-plus drone control program aimed at expanding U.S. production of small, low-cost unmanned aircraft. The second phase of that project is scheduled to begin this month.
Overseas geopolitical risks and the war with Iran have highlighted the need for low-cost weapons for combat. The Trump administration is requesting a record $1.5 trillion defense budget for 2027. As part of that budget, the Pentagon is seeking a historic $75 billion for drones.
The tariffs will take effect within 21 days. For drones or parts that are “not particularly sensitive,” the mission will take place within 180 days. The order also allows the Commerce Department to launch an onshoring program to assist companies looking to invest in drones in the United States.
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