Unusual Machines surges 25% on Trump drone tariffs
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- Drone stocks rallied sharply Friday after Trump's tariff announcement, with Unusual Machines popping 25%, Red Cat up about 8%, and AeroVironment and Kratos also climbing.
- The tariff order hits large drones with "sensitive" military capabilities like thermal imaging with a 100% levy and smaller drones lacking such capabilities with 25%, while drone parts from the EU, Japan, Liechtenstein, South Korea, Switzerland, and Taiwan face 15% and UK parts 10%.
- Donald Trump Jr. joined Unusual Machines' advisory board in November 2024 and held 331,580 shares in the company as of November 27, 2024, creating a direct financial tie to one of the day's biggest gainers.
- The Trump administration launched a more than $1 billion "drone dominance" program earlier this year to scale U.S. manufacturing of small, low-cost drones, with its second stage slated to begin this month.
- Tariffs take effect within 21 days, while duties on drones and parts not deemed "particularly sensitive" take effect in 180 days; the order also lets the Department of Commerce launch an onshoring program for U.S. drone investment.
- For fiscal 2027, the Trump administration is requesting a record $1.5 trillion defense budget, with the Department of Defense seeking $75 billion for drones — framed against the need for lower-cost weapons highlighted by geopolitical risks and the war in Iran.
Why it matters: Drone investors won Friday — Unusual Machines jumped 25% on the news, and Donald Trump Jr. holds 331,580 shares in that same company. Foreign drone makers now face a 21-day countdown before tariffs hit, while the administration is separately asking Congress for $75 billion in drone funding inside a record $1.5 trillion 2027 defense budget.
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