Inserting power, President Trump imposes drone tariffs

Unusual Machines (NYSE:UMAC) shares jumped 14% Friday, while Red Cat Holdings (NASDAQ:RCAT) rose 8%, Ondas Holdings (NASDAQ:ONDS) gained 4%, and AeroVironment (NASDAQ:AVAV) climbed 2.8% after President Donald Trump imposed tariffs on drones and their components.

Trump signed a proclamation imposing tariffs aimed at bolstering national security and strengthening the domestic drone supply chain. The measure imposes a 100% ad valorem tariff on drones exceeding 25 kilograms maximum takeoff weight or equipped with thermal imaging capabilities, along with their docking stations and critical components.

Smaller drones and other drone components will face a 25% ad valorem tariff. Reduced rates apply to products from certain allies, with drones from the European Union, Japan, Liechtenstein, South Korea, Switzerland, and Taiwan subject to a 15% tariff, and those from the United Kingdom facing a 10% tariff, provided substantially all hardware, software, and technology originates from these countries and the United States.

The tariffs will take effect 21 days after signing for the most sensitive products. For less sensitive drone components, the tariffs will take effect 180 days after signing. Products approved for exemption by the Department of War within 20 days will also see tariffs delayed by 180 days.