The Trump administration announced some policy changes on Jan 17, which partially eased the U.S. export rules for firearms, including assault rifles and ammunition. This change comes much to the delight of investors as the U.S. firearms and ammunitions industry has not made noticeable progress over the past few years.
The latest move is thus projected to boost companies manufacturing firearms and ammunitions, along with others associated with the industry.
What’s the New Rule?
Per the recent announcement made by the Trump administration, the government is going to transfer control of some commercial firearm exports from the U.S. State Department to the Commerce Department. The amendment, which began under the Obama administration, is intended to lower costs for U.S. firearm makers such as American Outdoor Brands (AOBC – Free Report) and Sturm, Ruger. This, in turn, will help U.S. firearm and ammunition manufacturers to undergo fewer registration requirements in order to obtain an export license.
However, as stated by Clarke Cooper, assistant secretary of the Bureau of Political-Military Affairs, “firearms and related articles that perform an inherently military function or provide the United States with a critical military or intelligence advantage will remain under State Department export licensing controls.”
Current Status of Firearms Industry
Firearms sales slumped markedly after President Trump was elected in 2016, as fears of gun control melted away with the administration’s vocal support of…