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The Intercept
3 days ago
- Business
- The Intercept
Donald Trump Jr.'s Drone Ventures Could Make a Killing — Thanks to Dad's Big Beautiful Budget
Last November, shortly after Donald Trump was reelected president, his son Donald Trump Jr. joined a venture capital firm with investments in several defense companies. Later that month, he was appointed the advisory board of Unusual Machines, a small, Florida-based drone company incorporated in Nevada. Securities filings showed Trump Jr. owned 331,580 shares in the company, with only two top executives holding more. After he joined the board, the stock doubled to about $10 a share. It was a boon for Trump Jr., but not his last chance to make big money off drones — and his efforts to do so may get a big helping hand from dad. President Donald Trump's military procurement policies, defense budget, and recently passed government budget, the One Big Beautiful Bill Act, includes $1.4 billion dollars for small drone production — where Unusual Machines has been making big investments. 'There is no modern or historical comparison for what Don Jr. and the President are doing.' With his father's administration footing the bill for massive domestic drone expansion, good government watchdogs fear Trump Jr. could benefit financially, creating a conflict of interest, or at least the appearance of one — without anyone even finding out. The president's family is not subject to the same financial disclosures that federal officials must make about their financial and business interests. 'Don Jr. is not subject to any disclosures,' said Donald Sherman, executive vice president and chief counsel at Citizens for Responsibility and Ethics in Washington, or CREW. 'There's just innumerable ways that this company with ties to Don Jr. can lobby the administration through him without having to report that information.' (Unusual Machines, the Trump Organization, and the White House did not respond to requests for comment.) Though many current and former elected officials have deep ties to the defense industry, Sherman said the Trumps' positions were unique in their scale and brazenness. 'I want to make clear that this is a problem, and it's a problem that impacts the whole of government,' Sherman said, 'but there is no modern or historical comparison for what Don Jr. and the President are doing.' Unusual Machines has been positioning itself to benefit from legislative and government policy changes. The company is made up of two parts: Fat Shark, which makes goggles, controllers, and other drone components and accessories; and an e-commerce platform called Rotor Riot, which sells drone parts. According to a pitch deck for investors, Unusual Machines also plans to acquire an Australian drone motor manufacturer, Rotor Lab. The acquisition of Rotor Lab, according to the presentation, is part of a wider plan to move the small-drone supply chain to American soil. The company will produce its own drone motors at a planned 17,000 square foot facility in Orlando, Florida. That facility is, according to the pitch deck, part of an effort to 'onshore' more drone manufacturing and avoid heavy tariffs on Chinese drone technology. Moving more manufacturing to the U.S. will also help comply with new government national security regulations and Pentagon procurement policies. Congress has just begun work on the 2026 defense budget, or National Defense Authorization Act. The NDAA is set to prioritize government funding for bringing production of small drone components to the U.S., including at private manufacturing facilities. And a July 10 memo from Defense Secretary Pete Hegseth states the Pentagon's intention to invest significantly in American-made drones and drone components — like those Unusual Machines plans to manufacture starting in September, according to the investor presentation. (The Pentagon did not respond to a request for comment.) Some of Unusual Machines' moves are already in line with military drone applications. The company will make motors for first-person view drones, or FPVs — small drones of the kind already being trialed in military exercises — at the new Orlando facility. Because the company is focusing on making and selling FPV drone components that comply with the NDAA, they'd also stand to benefit from the One Big Beautiful Bill Act's billions in subsidies for military drone technology, including $1.4 billion 'for the expansion of the small unmanned aerial system industrial base.' Unusual Machines has a promising position in the market; since small drones are traditionally made for commercial use, larger defense contractors may have them in the catalog but haven't focused as much on developing them. Unusual Machines says in its investor presentation that bringing manufacturing to the U.S. will give it a 'strong competitive advantage.' Experts worry that having Trump Jr. on their side could do the same thing. 'There's always these risks that he is going to have inside information or be able to access inside information from the U.S. government for a whole range of things,' Colby Goodman, an arms trade expert at Transparency International U.S., said. 'Just from the procurement side, he could know about upcoming bids, and the content of what that is, and help them win contracts with the U.S. government.' 'When contractors don't get the U.S. government contracts they want … they backfill with arm sales and deals with foreign entities.' Even if Unusual Machines doesn't win contracts with the government, that doesn't mean it won't make money, Julia Gledhill, a research analyst for the National Security Reform Program at the Stimson Center, said. 'What happens when contractors don't get the U.S. government contracts they want is then they backfill with arm sales and deals with foreign entities,' Gledhill said. 'There's something to be said, potentially, about the idea that contractors are going to develop technologies or weapons with state support and make money by selling them elsewhere.' Trump Jr.'s ties to the defense and drone industries go further than his role with Unusual Machines. He's also a partner at 1789 Capital, a venture capital firm led by Republican megadonor Omeed Malik. The company's investments include plenty of defense firms like Anduril, AI-powered aerospace firm Hadrian, and Firehawk. Trump Jr.'s involvement in investment decisions isn't clear, but he's been positioned as a face of the company alongside Malik at events including the Qatar Economic Forum. 'Mr. Malik and Donald Trump Jr. have an established business relationship that dates back more than five years, which is why the firm was thrilled to welcome Don's business expertise last year in the role of partner,' said a 1789 spokesperson, who touted the firm's compliance and transparency records. 'Don, as a private citizen who has never served in government, is permitted to continue to pursue his decades-long career in business.' Trump Jr.'s potential benefit from his investments through 1789 would shake out differently from Unusual Machines. Partners in venture capital firms typically take a fee to manage investments in startups. Then, if those companies make a big return when they go public or are acquired by another firm, the venture capitalists can make money after they repay institutional investors. VCs also receive other benefits like a seat on the company's board or equity in the company. Start-ups backed by 1789 would be better positioned to be acquired or go public — as Anduril expects to do — with lucrative government contracts in hand. The fact that Trump Jr. stands to benefit from his father's presidency so much, on top of his family's wealth, clearly present conflicting interests, said Sherman, the CREW expert — but it's not illegal. Although there is legislation aimed at eliminating some types of conflicts of interest, there's no comprehensive bill aimed at the adult children of high-ranking officials. 'The rules themselves aren't designed, unfortunately, to force the adult children of government officials to report their financial entanglements,' Sherman said. 'But Don Jr. and President Trump continue to make the case for why maybe they should.'
DW
5 days ago
- Business
- DW
Trump tells Europe to get its 'act together' on immigration – DW – 07/26/2025
US President Donald Trump said immigration was "killing Europe" as he arrived in Scotland to play golf and meet leaders. Europe "better get [its] act together" on immigration, US President Donald Trump said as he landed in Scotland on Friday evening, local time. Speaking to reporters after disembarking from Air Force One, Trump said: "On immigration, you better get your act together. You're not going to have Europe anymore." Immigration, he claimed, was an "invasion" that was "killing Europe." During his five-day visit, Trump will play golf at two golf resorts he owns — one in the small village of Turnberry in South Ayrshire on Scotland's southwest coast and the other in Menie in Aberdeenshire. In Menie, Trump is to open a new golf course dedicated to his Scottish-born mother. The US president will also meet with leaders during his first trip to the United Kingdom since his reelection. While many US media outlets are describing Trump's visit to Scotland as a private visit, a White House spokesperson called it a "working trip" ahead of the president's departure. Spokesperson Taylor Rogers also brushed off questions about potential conflicts of interest, arguing that Trump's business success before he entered politics was a key to his appeal with voters. "We're at a point where the Trump administration is so intertwined with the Trump business that he doesn't seem to see much of a difference," Jordan Libowitz from Citizens for Responsibility and Ethics in Washington, an ethics watchdog organization, told AP news agency. "It's as if the White House were almost an arm of the Trump Organization," Libowitz said. Trump's trip will cost US taxpayers at least $10 million (€8.5 million), according to an analysis by the HuffPost, a progressive US news website. Pointing out that the trip is unrelated to a planned state visit to the UK in September, the called Trump's Scotland visit "by far the most expensive golf vacation to date in either of his terms." The president praised British Prime Minister Keir Starmer ahead of a meeting between the two in Turnberry, describing him as a "good man." "I like your prime minister, he's slightly more liberal than I am ... but he's a good man. He got a trade deal done," he told reporters, referring to a preliminary US-UK trade agreement signed in May 2025. During his trip, which lasts until Tuesday, Trump is also to meet with Scottish First Minister John Swinney and European Commission President Ursula von der Leyen. Von der Leyen confirmed she will come to Scotland to meet with Trump on Sunday in a bid to hash out a trade deal between the United States and the European Union. Trump told journalists there was a "good 50/50 chance" of a deal being struck, adding that it would be the "biggest deal of them all." Trump also took the chance to criticize renewable wind power. "Stop the windmills," he said on his arrival in Scotland, claiming they are "killing the beauty of your country." Trump has spent years railing against windmills. He once unsuccessfully tried to sue to stop the building of wind turbines in Scotland by arguing that an offshore windfarm would mar the view of people playing golf at his Menie course. More than half of Scotland's electricity is currently generated by wind power. The UK's newspaper reported that Trump's motorcade passed a small group of protesters as he arrived at his golf course in Turnberry. Campaign groups have planned what they call a "festival of resistance" against Trump's visit in several Scottish cities. Trump is generally unpopular in Scotland. A poll by the IPSOS market research company published in March found more than 70% of Scots have an unfavorable opinion of the US president.
France 24
6 days ago
- Politics
- France 24
Trump trip to Scotland combines diplomacy and golf
The president is expected to split his time between two seaside golf courses bearing his name, Turnberry and Aberdeen. Trump is due to arrive in Scotland Friday at 8:20 pm local time (1920 GMT) and has no public events scheduled for Saturday or Sunday, the White House said. An avid golfer, Trump is expected to tear himself away from the greens to meet with British Prime Minister Keir Starmer at some point, but details of that meeting have not been released. Starmer is not reputed to be as passionate about golf as the 79-year-old Republican, and may have other concerns to tee off on. The US and the UK announced a trade agreement in May, but London is worried about Trump's stated intention to "refine" the deal. The British leader, who has dodged the exorbitant tariffs other countries have been saddled with, will aim to stay in the good graces of the unpredictable American leader. Trump is also expected to return to the UK in September for a state visit -- his second -- at the invitation of King Charles III, which promises to be lavish. Trumpist discontent The trip to Scotland puts physical distance between Trump and the latest twists in the case of convicted sex offender Jeffrey Epstein, the wealthy financier accused of sex trafficking who died in prison in 2019 before facing trial. In his heyday, Epstein was friends with Trump and others in the New York jet-set, but the president is now facing backlash from his own MAGA supporters who demand access to the Epstein case files. Many support a conspiracy theory under which "deep state" elites protected rich and famous people who took part in an Epstein sex ring. But Trump is urging his supporters to move on and drop the case. The Wall Street Journal, which published an article detailing longstanding links between Trump and the sex offender, is being punished by the White House. Its reporting staff plans to travel to Scotland on its own and join the White House press pool. But it has now been denied a seat on Air Force One for the flight back home. Protests During a previous visit in 2023, Trump said he felt at home in Scotland, where his mother Mary Anne MacLeod grew up before emigrating to the United States at age 18. The affection is not necessarily mutual in Scotland, where protests are planned Saturday in Edinburgh and Aberdeen to oppose his visit. A significant police presence will be deployed. Residents, environmentalists and elected officials have also voiced discontent over the Trump family's construction of a golf course in Balmedie, a village in Aberdeenshire. While Trump's family has undertaken many development projects worldwide, the president no longer legally controls the family holdings. But opponents and watchdog groups have accused him of many conflicts of interest and using his position as US president to promote private family investments, especially abroad. The American NGO Citizens for Responsibility and Ethics in Washington said in May that 21 development projects were already underway abroad during Trump's second term. The group also noted that the Trump Organization revised its own ethical charter in January to remove any prohibition from launching new international ventures with private actors, departing from the moratorium it had imposed during Trump's first term.
The Herald Scotland
24-05-2025
- Business
- The Herald Scotland
Trump speaks with presidential seal at crypto dinner billed as private
Trump's official @GetTrumpMemes site promoted the dinner on May 5, saying, the "President of the United States is having Dinner with his top $TRUMP Coin holders. Who does that? Only The Crypto President." Ethics watchdogs blasted Trump for hosting the dinner that included former NBA star Lamar Odom and where investors spent an estimated $148 million on the $TRUMP meme coin to secure their seats, according to crypto intelligence firm Inca Digital. About 100 protesters across the street from Trump National Golf Course Washington D.C. in Sterling, Virginia, held signs with messages such as "Stop Crypto Corruption" and "Release the guest list." More: Trump's crypto dinner: Black ties, a Chinese billionaire and ethics questions "This is one of the most blatant and appalling instances of selling access to the presidency I've ever seen," said Donald Sherman, executive director and chief counsel of Citizens for Responsibility and Ethics in Washington. The Securities and Exchange Commission sued Sun and his companies - Tron Foundation, BitTorrent Foundation, and Rainberry - in March 2023. But under the Trump administration the SEC asked for the case to be put on hold in February to explore a resolution. More: Ex-NBA player Lamar Odom met with boos from hecklers at Trump's crypto dinner White House press secretary Karoline Leavitt told reporters the dinner was a private rather than public event. "The president is attending it in his personal time," Leavitt said. "It's not a White House dinner." She dismissed questions about the ethics of holding the dinner for people who invested in his crypto coin. "The president is abiding by all conflict of interest laws that are applicable to the president," Leavitt said. "The American public believe it is absurd for anyone to insinuate that this president is profiting from the presidency." Contributing: Reuters
CNN
22-03-2025
- Automotive
- CNN
The Trump administration can't stop shilling for Tesla
The White House appears to have a carrot-and-stick approach to making America love Teslas. Buy the car and the stock, officials say. And anyone caught vandalizing a charging station should expect to be labeled a 'terrorist thug,' one possibly bound for a Salvadorean prison, as President Donald Trump wrote Friday. The Trump administration's unique affection for Tesla is just one of the ways that officials appear to be using their power to advance their own business interests in ways that ethics experts say are both unprecedented and alarming. 'This is just not done,' Hui Chen, an anti-corruption expert and former federal prosecutor, told CNN. 'This endorsement of a domestic brand in a space where there are many domestic players is unconventional, to say the least.' The latest warning from Trump came Friday, when he suggested that acts of vandalism against Tesla showrooms and vehicles were more concerning than the January 6, 2021, attack on the US Capitol, when a violent mob tried to overturn the 2020 election that Trump lost. 'When I looked at those showrooms burning and those cars… exploding all over the place, these are terrorists,' Trump said in an Oval Office briefing. 'You didn't have that on January 6… these people are terrorists.' Of course, vandalism isn't terrorism unless you drastically stretch the word's meaning, Chen notes. Vandalism is a crime, but 'to call vandalism against Tesla in this unique set of circumstances an act of terrorism… There's just simply no basis for saying that,' she said. Trump's comments Friday underscored a consistent message from his administration: that Tesla is special and should be treated as such. But any upside for Tesla's business would directly enrich CEO Elon Musk, who is a special government employee overseeing an unofficial department that is trying to gut federal services and employment rolls. Last week, Trump staged a live Tesla ad on the White House's South Lawn, telling reporters he would write Musk a check for one of them for himself. The spectacle offered Tesla shares a sharp but short-lived bump. It is not unusual for the US government to try to boost certain domestic industries broadly. But they don't single out one business over and over the way they have with Tesla, an American company with several American rivals, said Jordan Libowitz, vice president for communications at the advocacy group Citizens for Responsibility and Ethics in Washington, or CREW. The Tesla cheerleading reached a new apex on Wednesday. As Tesla's stock was tumbling, Secretary of Commerce Howard Lutnick went on Fox News to urge viewers to buy Tesla's 'cheap' stock — a moment that appeared to violate government ethics rules and simultaneously offer misleading investment advice. (Despite Tesla shares losing about half their value since December, they are not, in fact, 'cheap.' By traditional metrics, Tesla shares remain some of the most expensive on Wall Street, trading at 60 times its projected 2026 earnings, per Fortune.) Lutnick's Tesla comments didn't end up helping much, as Tesla's stock — weighed down by falling sales and a growing brand crisis — fell 1.7% in premarket trading following his appearance. 'Saying 'buy the stock' is something we can't think of ever seeing before,' Libowitz said, noting that a large portion of Musk's wealth is tied up in Tesla stock. 'It's hard to see it as anything other than the White House doing a solid for one of its senior people.' The White House, Commerce Department and Tesla didn't immediately respond to CNN's request for comment.
