$UMAC jumps 24.2%, $RCAT gains 8.8% after U.S. drone tariffs

$UMAC rose 24.2% and $RCAT gained 8.8% on Aug. 14 after the White House ordered tariffs on imported drones and components. The single-stock moves cleared the 8% materiality threshold and were tied to a named policy catalyst, not technical trading.

Unusual Machines $UMAC, a U.S. maker of drone components, recorded the largest reaction. Red Cat $RCAT followed with an 8.8% gain. AeroVironment $AVAV added 1.3%, while Kratos Defense $KTOS advanced 2.9%, according to market data reported by CNBC.

Tariff schedule

The White House fact sheet sets a 100% tariff on large drones with sensitive military capabilities, including thermal imaging. Smaller drones without those capabilities face a 25% levy.

Imports from the European Union, Japan, Liechtenstein, South Korea, Switzerland and Taiwan are subject to a 15% rate, while U.K. products face 10%. The sensitive-product tariffs are scheduled to take effect within 21 days. Duties on products outside that group are scheduled within 180 days, leaving companies two separate implementation windows.

Why the market moved

The policy directly changes the relative cost of foreign and domestic supply. That gives U.S.-based component makers a clearer pricing umbrella, but the benefit depends on how much of each company’s own bill of materials remains imported. The order also authorizes Commerce Department support for onshoring investment.

The demand backdrop is large. The administration has cited a drone-manufacturing program of more than $1B, while the proposed 2027 defense budget totals $1.5T and includes a $75B request for drones. Those figures describe government demand capacity; they are not company revenue commitments.

Next, investors should watch the product classifications published during the 21-day window, company disclosures on sourcing, and any retaliation affecting electronics inputs. The Aug. 14 share moves price in policy support, but the final margin effect will depend on procurement rules and domestic production capacity.

Not investment advice. Verify all figures with primary sources before acting.