Newsletter: Dueling Gun Company Liability Decisions Land Alongside Tariffs

This week, we got a lot of news that impacts the gun industry.

First up, we had a pair of rulings over whether gun companies can be held liable for the criminal acts of third parties. The Pennsylvania Supreme Court unanimously came down on one side in a case against Springfield Armory. Meanwhile, an Illinois judge came down on the other in a case against Smith and Wesson.

Then we saw the gun sales numbers come in, and they weren’t great. Another year-over-year decline. And, as I explain for Reload Members, the industry now has to worry about what President Trump’s new tariffs might do to its bottom line.

Plus, firearms scholar David Kopel joins the podcast to discuss the Supreme Court’s decision upholding the ATF ‘ghost gun’ ban. And Contributing Writer Jake Fogleman examines the Trump Administration’s new civil rights investigation into Los Angeles County’s long gun-carry permit processing times and high fees. We also have a bunch of good stories down in the links, including one about AGs looking to get the Supreme Court to take up another gun case.


A Springfield Armory pistol display at the 2022 NRA National Meeting
A Springfield Armory pistol display at the 2022 NRA National Meeting / Stephen Gutowski

Pennsylvania Supreme Court Tosses Liability Case Against Springfield Armory
By Jake Fogleman

A major gunmaker cannot be held liable for the accidental shooting death of a Pennsylvania juvenile, the state’s high court ruled on Monday.

The Pennsylvania Supreme Court unanimously dismissed a liability lawsuit against Springfield Armory over the negligent shooting of one young teenager by another. The court determined that the federal Protection of Lawful Commerce in Arms Act (PLCAA), which generally prohibits lawsuits against the gun industry for harms caused by third parties, is a valid exercise of Congressional authority and bars such suits from proceeding.

“We granted allowance of appeal to address whether the PLCAA operates to bar the Gustafsons’ action and, if so, whether the PLCAA is constitutional under the Commerce Clause and the Tenth Amendment of the United States Constitution and principles of federalism,” Justice Sally Updyke Mundy wrote in Gustafson v. Springfield. “After careful and sober consideration, we answer those questions affirmatively.”

Click here to read more.


Smith & Wesson rifles on display at the 2022 NRA Annual Meeting
Smith & Wesson rifles on display at the 2022 NRA Annual Meeting / Stephen Gutowski

State Judge Allows Highland Park Victims’ Case Against Smith and Wesson to Move Forward
By Stephen Gutowski

An Illinois judge greenlit a liability lawsuit against one of the nation’s largest gunmakers on Tuesday.

Judge Jorge L. Ortiz dismissed some of the claims Highland Park shooting victims brought against Smith and Wesson, but allowed others to move forward. He did the same for Bud’s Gun Shop and Red Dot Arms. He said the plaintiffs had articulated a claim not blocked by the federal Protection of Lawful Commerce in Arms Act (PLCAA).

“[H]ere Plaintiffs have sufficiently alleged that Smith & Wesson’s unlawful conduct created a condition that foreseeably led to the shooter’s criminal act,” Judge Ortiz wrote in Roberts v. Smith and Wesson. “The Complaints allege: (1) AR-15 style firearms, in particular the Smith & Wesson M&P 15 rifle, are the weapon of choice for mass shooters; (2) mass shooters are typically impulsive young men with hero complexes and delusions of militaristic grandeur; and (3) Smith & Wesson purposefully targeted its marketing of AR-15 style firearms at this group by employing tactics and themes it knew would be disproportionately attractive to dangerous people like the shooter.”

Click here to read more.


The Global Defense gun exporter booth at SHOT Show 2024
The Global Defense gun exporter booth at SHOT Show 2024 / Stephen Gutowski

Analysis: Trump’s Tariffs Could Hit Gun Industry Hard [Member Exclusive]
By Stephen Gutowski

The gun industry is one of the few bright spots in American manufacturing, but that doesn’t mean it’s invulnerable to new tariffs.

While many storied firearms brands are American and still produce their products in America, imported guns and ammunition are also clearly popular. The Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) most recent data shows American manufacturers produced 171,810,319 firearms from 2000 through 2023. The same numbers show Americans imported another 93,355,557 guns. American manufacturers also exported 9,409,676 firearms over that time.

ATF data on ammunition manufacturing and importing tells a similar story. While the numbers aren’t as precise, American makers produce most of the ammunition for the domestic market–though a Czech company just bought one of the biggest American ammo manufacturers. But imports have supplied a huge chunk of the ammunition market as well. Between 2010 and 2020, the ATF reports Americans imported more than 26 billion rounds of ammunition.

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Customers handle some pistols at a gun show booth in December 2023
Customers handle some pistols at a gun show booth in December 2023 / Stephen Gutowski

Gun Sales Down in March, Entire First Quarter
By Stephen Gutwoski

Americans have been less motivated to visit their local gun shops through the first three months of the year, according to a new industry report.

The number of gun-sales-related background checks fell again in March. Checks fell by about 3.8 percent last month compared to the previous month, according to a National Shooting Sports Foundation (NSSF) analysis of FBI data.

That makes March 2024 the worst-performing March of the last five years and even drops it below several pre-pandemic years.

Click here to read the rest.


Podcast: Firearms Policy Scholar David Kopel on Fallout from the SCOTUS ‘Ghost Gun’ Ruling
By Stephen Gutowski

This week, we’re taking a close look at the Supreme Court’s ruling in Bondi v. VanDerStok.

To do that, we have the Independence Institute’s David Kopel on the show. Kopel has written extensively on gun policy and been cited repeatedly at the Supreme Court. So, there are few people better qualified to dissect what the VanDerStok ruling means.

You can listen to the show on your favorite podcasting app or by clicking here. Video of the episode is also available on our YouTube channel.

Plus, Contributing Writer Jake Fogleman and I talk about Vanderstok. We also discuss the financial troubles hitting the gun-control group March for Our Lives. Finally, we cover an outlier federal ruling on New York City’s stun gun ban before highlighting DOJ’s plans for the ATF and investigation into California’s gun-carry permitting.

Audio here. Video here.


A Department of Justice flag flies in the wind
A Department of Justice flag flies in the wind / Stephen Gutowski

Analysis: Trump Admin Ramps Up Scrutiny of Local Gun Restrictions [Member Exclusive]
By Jake Fogleman

The early days of the second Trump administration have seen just a few concrete actions on gun policy, mostly limited to federal personnel moves and procedural reforms. Now, it is firing a shot across the bow of states and localities pushing the envelope on Second Amendment restrictions.

On Thursday, the Department of Justice (DOJ) announced a formal investigation into the Los Angeles County Sheriff’s Department and its handling of concealed handgun license applications. The DOJ said it was concerned that the department has been engaging in “a pattern or practice” of subjecting applicants to excessive fees and wait times before they can exercise their right to bear arms.

“This Department of Justice will not stand idly by while States and localities infringe on the Second Amendment rights of ordinary, law-abiding Americans,” Attorney General Pam Bondi said in a press release launching the probe. “The Second Amendment is not a second-class right, and under my watch, the Department will actively enforce the Second Amendment just like it actively enforces other fundamental constitutional rights.”

What This Means

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Outside The Reload

It’s Ladies’ Night at the Gun Range | Wall Street Journal | By Cameron McWhirter

California law to hold gunmakers liable for harm will remain blocked during litigation | Courthouse News Service | By Sam Ribakoff

Texas ghost-gun machine maker must stop selling to Californians, judge says | Courthouse News Service | By Sam Ribakoff

NRA sues to stop ammunition, firearm excise tax approved by Colorado voters as it takes effect | Fox 31 | By Heather Willard

Oregon gun bill to raise possession age to 21, establish 72-hour wait splits lawmakers | The Oregonian | By Maxine Bernstein

At least half of US states now outlaw devices that convert pistols into machine guns | AP News | By David A. Lieb

Republican AGs Urge Supreme Court to Accept Challenge to D.C.’s Gun and Magazine Bans | Bearing Arms | By Cam Edwards


That’s it for this week in guns.

If you want to hear expert analysis of these stories and more, make sure you grab a Reload membership to get our exclusive analysis newsletter every Sunday!

I’ll see you all next week.

Thanks,
Stephen Gutowski
Founder
The Reload

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