Trump Jr's 'Amazon of guns' could make millions under new proposed firearm rule

Highlights

• Donald Trump Jr, a GrabAGun investor, could benefit from new administration proposal allowing home delivery of firearms.
• Trump Jr. said in a statement that he had "zero involvement" in crafting the proposed gun policy.
• ATF estimates half of all gun buyers will eventually buy guns online and get them delivered.

Donald Trump Jr. helped take an online retailer known as the "Amazon of guns" public last year. Now, GrabAGun, where the US president's son is a shareholder and board member, could reap a windfall from a proposed rule change at Trump's Bureau of Alcohol, ​Tobacco, Firearms and Explosives that would make it easier to ship guns directly to people's homes.

If finalized, the rule would be among the most consequential changes to the US gun policy in two decades, potentially driving huge growth in online gun sales, ‌according to ten industry officials, store owners, and gun-control advocates interviewed by Reuters.

The proposal would allow licensed dealers to ship firearms directly to in-state residents who undergo an online identity verification and background check, along with a seven-day waiting period after notifying local law enforcement. Currently, online buyers must pick up firearms at physical stores and undergo in-person background checks unless they have a permit.

Some gun shop owners, industry officials and gun control advocates argue the direct shipping of firearms poses significant public safety and security risks and threatens the viability of small brick-and-mortar gun shops.

The change could benefit Trump Jr, whose more than 300,000 shares, in GrabAGun are worth more than $700,000 – down from more than $5 million last year.

A spokesperson for Trump Jr., Andrew ​Surabian, said in a statement that the president's son had no role in the ATF proposal.

"Don is a lifelong businessman and vocal advocate of our Second Amendment rights," he said. "He does not interface with the Federal Government as part of his role with any company that he ​invests in or advises and had zero involvement in this particular decision."

GrabAGun CEO Marc Nemati told Reuters that neither he nor Trump Jr. knew this proposal was coming. He said in an interview that the company is still ⁠analyzing the potential impact of the rule change on its $100 million in revenue.

The CEO was bullish, however, in a May news release, "We believe GrabAGun is uniquely positioned to capitalize on this potential opportunity."

A GROWTH MARKET IN FIREARMS HOME DELIVERY

The ATF projects that half of all gun buyers – nearly 3.3 million people a year – ​would eventually use the home-delivery method. Some industry leaders told Reuters they expect the actual numbers to be far higher because of the convenience of online shopping. Online ordering for in-store pickup currently represents a smaller but still substantial portion of US gun sales, industry experts say.

Marianna Mitchem, a senior firearms industry advisor at Everytown for Gun Safety, worked at ATF for more than 20 years, including about four as the industry liaison. She said the industry had never asked for a similar policy in her interactions and ​that physical gun shops had historically played a key role in vetting owners.

"ATF always says the gun store is the first line of defense in gun safety," said Mitchem, who opposes the proposed rule. "But now they are flipping it."

'PEOPLE BUY EVERYTHING ONLINE'

Founded in 2010, GrabAGun is one of the nation's leading online-first gun retailers, though some competitors ‌with physical retail operations ⁠also provide online ordering. GrabAGun would be poised for substantial growth under the new ATF rule but competitors including major outdoor stores and other retailers could also take advantage of the regulations, according to industry analysts, former ATF officials and gun shop owners.

Trump Jr. emerged as the face of GrabAGun last year when it went public through a special purpose acquisition company merger that netted the company $119 million. That SPAC was brought by 1789 Capital, where Trump Jr. is a partner.

Shares of the company, which trades under the ticker PEW, have dropped 85% over the past year. Reuters could not establish the factors driving the stock's falling price.

Trump Jr. argued at the time that the online gun sales were safe because they were sending guns to gun shops for customer pickup – rather than directly to homes, as the new rule would allow. He also made TV appearances to argue that young people and women who may not otherwise want to visit ​a gun store would flock to the company's more accessible website.

"People buy ​everything online," Trump Jr told Fox Business, last summer.

GUN SHOPS WORRY ABOUT SAFETY, ⁠LOST BUSINESS

The proposed rule is now in a public comment period that closes in early August. The proposal may not be finalized until late 2026 or early 2027 and could still be withdrawn or changed.

Gun-control groups, including Everytown, Brady and Giffords, argue shipping millions of firearms to buyers' homes is ripe for illegal gun trafficking, mail theft and straw purchases, when a legal buyer purchases a firearm on behalf of someone prohibited from owning one.

"Even with the most robust ​virtual sales and background check process, there is no way for a gun store that is selling a gun over the internet to know if the person making the purchase is funneling the firearms to others," ​Giffords spokesperson Aneesa McMillan said in a statement.

The ⁠change coincides with a similar proposal by the US Postal Service to lift a century-old ban on mailing handguns.

Justin Anderson, the director of online sales at Hyatt Guns, which has a storefront in North Carolina and is one of the nation's largest gun retailers, said physical shops act as the "last line of defense" to ensure dangerous people do not obtain weapons. While Anderson said Hyatt would likely adopt home delivery if the rule is finalized, the safety concerns give him pause.

Smaller shop owners said in interviews they worried about both the safety and financial risks that would result from the proposal. Many smaller rural dealers survive on "transfer fees" – which can run about $30 ⁠per weapon – charged to ​complete background checks for online purchases that require in-store delivery. Such transactions also drive foot traffic for ammunition and accessories that drive sales.

Chrystal Santos, who runs operations at Bow & Barrel Sportsmen ​Center in Missouri, submitted a public comment opposing the rule.

She said her staff is trained to spot straw purchases by reading customer behavior – an intuitive process she said online verification cannot replicate.

"It opens a whole can of worms," Santos said. "Places like GrabAGun and others are the problem, they make it harder for shops like us."

Leider defended the proposal, arguing that it calls for a verification ​system that is more secure than traditional retail.

"The people who are concerned about this being susceptible to straw purchases have an idealized view of what an in-store purchase is," Leider said, arguing that some physical shops act as "little more than a paperwork conduit."