Commerce Secretary Howard Lutnick mentioned on Tuesday that the Trump administration is “considering” acquiring shares in defense contractors.
During a segment on CNBC’s “Squallbox,” Andrew Ross Sorkin posed a question: “Why doesn’t the US government say, ‘We use Palantir Services, so we want a share in Palantir? We utilize Boeing Services. We want Boeing’?”
Sorkin further remarked, “Many businesses engage with the US government. That’s where the profits come from. The big question is, where’s the money?”
“Absolutely, there’s a significant discussion happening around defense,” Lutnick responded. He noted that Lockheed Martin derives 97% of its revenue from government contracts. “Essentially, they act as an arm of the US government, producing top-notch ammunition capable of intercepting missiles mid-air.”
“But what about the economic implications? I’ll leave that to my Secretary of Defense—they’re addressing that,” he added.
Last Friday, President Trump announced that Intel had agreed to sell a 10% stake to the government.
“They accepted this offer, and I believe it’s a substantial deal for them,” Trump stated to reporters.
Later, he took to social media, expressing pride in the US’s new 10% ownership of Intel, a notable American company with a bright future ahead.
“I worked out this deal with Lip Bou Tan, the highly respected CEO of the company,” he noted.
Earlier this month, Trump had asked his CEO to resign before a meeting intended to be “fun and constructive” at the White House.
A spokesperson for Lockheed Martin stated on Tuesday, “We will maintain strong cooperation with President Trump and his administration to bolster national defense.”
Some Republicans have voiced concerns about the idea of Intel transactions and the public ownership of private companies. Senator Rand Paul (R-Ky.) described it as “a terrible idea.”
He posted on social media, “If socialism involves the government managing production, wouldn’t owning a part of Intel represent a move toward socialism?”
