U.S. President Donald Trump signed a proclamation imposing tariffs of up to 100% on imported drones and key parts, using Section 232 of the Trade Expansion Act of 1962 to address what the White House described as national security risks tied to reliance on foreign supply chains. Larger drones with sensitive capabilities, including thermal imaging, and certain critical parts face 100% duties, while smaller drones and less-sensitive components face 25%. The administration also set lower rates for some allies, with certain qualifying imports from the European Union, Japan, Liechtenstein, South Korea, Switzerland and Taiwan facing 15%, and the United Kingdom facing 10%. The White House said the move is intended to strengthen U.S. drone manufacturing and reduce dependence on foreign suppliers, particularly China, which dominates the commercial drone market. Trump said Commerce Secretary Howard Lutnick found domestic manufacturers do not currently have the capacity to meet U.S. security needs in the Unmanned Aircraft System space. The proclamation gives Lutnick authority to create a program offering tariff relief tied to new investment in U.S. drone manufacturing as part of the administration's America First agenda. The policy has been viewed as a potential competitive boost for U.S. drone makers. Red Cat Holdings traded up 3.42% at $10.58 on Friday, while Kratos Defense & Security Solutions, AeroVironment, Unusual Machines and Ondas were also seen as possible beneficiaries. Unusual Machines climbed 19.64% in premarket trading on Friday to $32.59, near its 52-week high of $34.36. Earlier in August, the company reported a second-quarter loss of 16 cents a share on sales of $16.722 million, above the $9.195 million consensus estimate. XTEND separately said the tariffs reinforce its strategy of building a domestic, NDAA-compliant manufacturing base around its XFAB site in Tampa, Florida, and linked the policy shift to its pending all-stock combination with JFB Construction Holdings.