Trump Administration Indicates It Still Plans to Acquire Control of Major American Companies

Commerce Secretary Discusses Potential U.S. Stake in Defense Company

On Tuesday, Commerce Secretary Howard Lutnick mentioned that the Trump administration is “considering” an equity interest in a defense contractor. Speaking on CNBC’s “Squawk Box,” he highlighted a significant debate around defense funding, noting that the U.S. government holds stakes in various private firms. Lutnick suggested that companies like Lockheed Martin effectively operate as extensions of the government due to their substantial revenue from government contracts.

“Lockheed Martin derives around 97% of its income from the U.S. government,” Lutnick stated. He went on to describe their production capabilities, emphasizing the quality of their ammunition, which is vital for missile defense systems.

Lockheed Martin, recognized as the leading defense contractor, attracted attention for its revenue figures in 2024, as reported by Defense News.

Lutnick’s remarks followed the recent announcement from the White House about acquiring a 10% stake in Intel as part of a collaboration with a U.S. chip producer. He indicated that a key factor in assessing whether to invest in a company would be based on whether it adds “basic value” to its operations.

“If we’re contributing value to your business, I think it’s reasonable,” Lutnick added, noting that President Trump is focused on the interests of Americans.

However, Lutnick also indicated that the final decision regarding the defense company’s equity would rest with Pentagon officials. “I’ll leave those decisions to my Secretary of Defense, Pete Hegseth, and Deputy Chief of Defense, Steve Feinberg,” he remarked, recognizing their involvement in the discussions.

While the White House argues that investing in private companies is crucial for enhancing national security, some experts have raised concerns about these approaches. Notably, Republican Senator Rand Paul criticized the Intel contract, labeling it a “false idea” in a recent social media post. He questioned the implications of government ownership in such ventures, suggesting that it aligns with socialist ideologies.