US Commerce Secretary Hints at Acquiring Stakes in US Defense Contractors: "Discussions Underway"

After Intel, Defense Contractors Also Targeted
90% of Lockheed Martin's Revenue Comes from the U.S. Government

The Donald Trump administration, after acquiring a 10% stake in semiconductor company Intel, is now reportedly considering acquiring stakes in U.S. defense contractors as well.

UPI Yonhap News

Howard Lutnick, U.S. Secretary of Commerce, stated in a CNBC interview on the 26th (local time), "There are tremendous discussions underway regarding the acquisition of stakes in defense companies."

This comment came in response to the host’s question: “Is there any reason the U.S. government couldn’t say, ‘We are using Palantir’s AI defense services, so we want a stake; we are using Boeing’s services, so we want a stake’? Where is the appropriate line?” Previously, the Trump administration had criticized the recent semiconductor support act (CSA) subsidies as “handing out free money to large corporations” and secured a 10% stake in Intel.

Secretary Lutnick went on to say, “Lockheed Martin generates 97% of its revenue from the U.S. government. They are, in effect, a branch of the U.S. government.” According to the defense industry publication Defense News, Lockheed Martin is the world’s largest defense contractor by revenue as of 2024. In a statement to CNBC, a Lockheed Martin spokesperson said, “As we did during President Trump’s first term, we will continue to work closely with this administration to strengthen America’s national defense.” The Department of Defense has not yet responded to CNBC’s request for comment.

He added, “But what about the economics? I will leave that decision to the Secretary of Defense and the Deputy Secretary. They are in charge of that work and are reviewing it.”

Secretary Lutnick also mentioned that President Trump is reconsidering how the United States should financially support its weapons and defense capabilities, saying, “The way it has been done so far was a kind of ‘handout.’” This statement is interpreted as suggesting the possibility of a complete overhaul of the annual defense budget system approved by Congress.

However, even within the ruling Republican Party, there is criticism that the Trump administration’s attempts to acquire stakes in private companies could undermine free market principles and restrict corporate decision-making.

Rand Paul, U.S. Senator from Kentucky (Republican), stated in a press release to political news outlet Politico, “Today it’s Intel, but tomorrow it could be any industry the future Secretary of Commerce decides to control. If conservatives support this, they are handing Democrats a blueprint for expanding government ownership of the private sector in the future.”

This content was produced with the assistance of AI translation services.