AeroVironment (AVAV) Stock Jumps as Trump Hits Foreign Drone Makers With 100% Tariff
TLDR
- The Trump administration signed a proclamation imposing 100% tariffs on heavy and military-grade foreign drones and 25% on smaller commercial drones, effective September 3, 2026.
- AVAV rose 3.3% in pre-market trading to $195.69, up from a prior close of $189.43.
- The policy includes an onshoring incentive allowing companies to apply for tariff exemptions if they commit to building U.S. manufacturing facilities before January 2029.
- AeroVironment posted Q1 revenue of $641.62 million, up 133.3% year over year, with EPS of $1.84, beating estimates of $1.47.
- Analysts hold a consensus “Moderate Buy” rating on AVAV with a price target of $266.68.
The Trump administration signed a sweeping drone tariff order late Thursday, and AeroVironment was one of the first names to react. AVAV jumped 3.3% in pre-market trading, hitting $195.69 against a prior close of $189.43.
The proclamation, issued under Section 232 of the Trade Expansion Act, puts a 100% tariff on heavy and military-grade unmanned aircraft systems. That covers drones over 25 kilograms or those equipped with thermal imaging, plus their docking stations and key hardware. Smaller commercial drones get hit with a 25% duty.
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