Why Red Cat Stock Just Popped President Trump just gave this drone company a big boost.

 econews. As The Wall Street Journal reports today, the new tariffs are intended to boost drone production and create jobs in the drone industry in the U.S. -- while also enhancing national security by developing a home-grown drones industrial base.

China currently dominates international drone production, and isn't necessarily a friendly power -- not one the U.S. wants to depend on for its drone supply chain in a time of conflict. Accordingly, the Journal notes that imports of drones and drone parts from China "will face significantly higher levies than those from allied nations." Friendly nations such as Japan, Liechtenstein, South Korea, Switzerland, and Taiwan, as well as EU countries, will be tariffed at only 15%. The U.K. will receive a 10% tariff rate on drones.

President Trump's drone import ban

Tariffs will also vary based on how advanced the drones and drone components are, with thermal imaging equipment in particular subject to 100% tariffs. The tariffs will begin being implemented three weeks from now and will fully roll out over the next six months.