The Trump administration has decided to revoke the restrictions on civilian firearms exports that were implemented during the Biden era. This move is expected to provide a significant boost to the U.S. gun industry.
Trump Revokes Biden-Era Gun Export Rules
The Commerce Department’s Bureau of Industry and Security announced on Monday that it is revoking the restrictions on civilian firearms exports that were implemented during the Biden administration, Reuters reported. These restrictions had been placed on sales to 36 countries considered high-risk for weapons diversion to criminals and terrorists.
The Trump administration’s decision is set to reinstate the export rules that were in place during Trump’s first term. This move is expected to create “hundreds of millions of dollars per year in export opportunities” for U.S. gun manufacturers.
Despite the Biden administration’s efforts to curb gun violence, including imposing these restrictions in April 2024, the Trump administration has been unwavering in its support for the firearms industry.
Export Rules Tightened For Most Firearms, Some Eased For Allies
The new regulations will continue to require export licenses for most pistols, rifles, and non-long-barrel shotguns globally, whereas long-barrel shotguns and most scopes can be exported to U.S. allies without a license.
The Trump administration's move aligns with the former president's long-standing position on gun rights. Trump has consistently opposed reforms such as raising the legal age for gun purchases, tightening background checks, or restricting assault-style rifles.
However, Trump administration officials stated that screenings will remain in place to stop weapons from falling into the hands of ‘wrongdoers.
US Gun Industry Set To Gain, Steel Tariffs Pose Challenge
This policy change is a significant win for the U.S. firearms industry, particularly for major manufacturers like Sturm, Ruger & Co (NYSE:RGR) and Smith & Wesson Brands (NASDAQ:SWBI). The Biden administration's restrictions were projected to cut average annual U.S. firearms exports by 7%, or $40 million, but the new rules are set to reverse that trend.
Earlier in August, a gun financing firm backed by Donald Trump Jr. was cleared as the Consumer Financial Protection Bureau ended a Biden-era probe, citing political bias. This development was seen as a win for the gun industry and conservative investors.
However, the U.S. gun industry has faced challenges, including steel tariffs imposed by the Trump administration, which impacted the profitability of gun manufacturers. The recent policy change could potentially mitigate some of these challenges and provide a much-needed boost to the industry.
READ NEXT:
Image via Imagn
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
