Red Cat (RCAT) Stock Pops 7% as Trump Slaps 100% Tariff on Foreign Drones
TLDR
- President Trump signed a proclamation imposing tariffs of up to 100% on imported drones, citing national security concerns.
- Red Cat stock jumped 7.1% in pre-market trading following the announcement.
- Heavy and military-grade drones face a 100% tariff rate; smaller commercial drones face 25%, effective September 3, 2026.
- Red Cat posted Q2 revenue of $20.19 million, a 527% year-over-year increase, though it missed consensus estimates.
- Director Christopher Moe sold 30,000 shares worth $310,600 across two transactions in August 2025 and August 2026.
Red Cat Holdings (RCAT) jumped 7.1% in pre-market trading on August 14, 2026, after President Trump signed a proclamation invoking Section 232 of the Trade Expansion Act to impose steep tariffs on imported drone systems.
The stock was trading around $11.03 in pre-market, up from its prior close of $10.23.
Heavy and military-grade drones weighing over 25 kilograms, or those equipped with thermal imaging, will face a 100% ad valorem tariff rate. Smaller commercial drones will face a 25% duty. Both sets of tariffs are set to take effect on September 3, 2026.
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