3 Gun Stocks Up on Trump’s Deregulatory Gun Export Proposal

3 Gun Stocks Up on Trump's Deregulatory Gun Export Proposal

With its latest proposal to shift control of U.S. firearm exports from the State Department to the Commerce Department, the Trump administration once again proved its allegiance to the gun lobby. As expected shares of major U.S. gun manufacturing stocks witnessed a rally on May 24, following the proposed policy announcement. What’s the New Policy? As published in the Federal Register, firearms, close assault weapons and combat shotguns; guns and armament, and ammunition/ordnance would now on be controlled by the Commerce Control List (CCL) and the Export Administration Regulations (EAR). The U.S. administration has justified the proposed rule, remarking the reforms will reduce “procedural burdens and costs” on American gunmakers that are selling firearms abroad. Moreover, the new regulations would end the vital procedure of notifying Congress of firearms deals worth more than $1 million. The proposed policy is said to be cost effective for the U.S. government and is aimed at simplifying the licensing process for export of the aforementioned weaponries. Will the Gun Industry Benefit? The U.S. gun industry has been going through a rough patch since Donald Trump became President in 2016. With the Commerce Department’s primary agenda to push exports, the latest policy proposal, if implemented, will boost export of U.S. firearms to foreign lands. To this end, the National Shooting Sports Federation (NSSF) — the trade association for the firearms industry — estimates that U.S. firearms exports could increase up to 20% under the new rules. However, a few other experts predict a comparatively […]

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