U.S. drone-related stocks rallied in early trading: Unusual Machines(UMAC.US) surged over 20%, RED CAT HOLDINGS(RCAT.US) rose more than 11%, AeroVironment, Inc.(AVAV.US) climbed over 8%, and both Ondas Holdings(ONDS.US) and Kratos Defense & Security Solutions, Inc.(KTOS.US) gained more than 5%.

On the news front, the White House announced on the 13th that President Trump had signed a proclamation imposing *ad valorem* tariffs ranging from 10% to 100% on imported drones and their components, citing threats to national security.

According to the proclamation, a 100% *ad valorem* tariff will be imposed on complete drones, docking stations, and certain key components for drones that exceed a maximum takeoff weight of 25 kilograms, possess thermal imaging capabilities, or meet other specified criteria. Smaller drones or those deemed to have a lesser impact on national security—along with other components—will be subject to a 25% *ad valorem* tariff. The proclamation also sets specific tariff caps of 15% or 10% for drones and components originating from various countries or regions.

The proclamation also authorizes the U.S. Secretary of Commerce to establish new investment mechanisms aimed at reshoring the manufacturing of drones and components to the United States.

Under the proclamation, the new tariff measures will take effect on September 3. For drone components deemed less sensitive, or for products and components granted exemptions by the U.S. Department of Defense, the new tariffs will go into effect on February 9, 2027.

In the proclamation, Trump stated that the decision was based on a recent report by the U.S. Department of Commerce—conducted under Section 232 of the Trade Expansion Act of 1962—investigating the impact of imported drones and their components on U.S. national security.