Trump Administration Indicates It’s Still Pursuing Control Over Key American Companies

Discussion on Defense Company Investment

Commerce Secretary Howard Lutnick mentioned on Tuesday that the Trump administration is “considering” a potential investment in a defense firm. In an appearance on CNBC’s “Squawk Box,” Lutnick responded to ongoing debates regarding defense by saying, “The US government holds shares in private companies and has a certain stance on this.” He also emphasized the significant role of American defense firms like Lockheed Martin, which he described as essentially being “the arms of the US government.”

“Lockheed Martin derives 97% of its revenue from the US government,” Lutnick stated. He highlighted their capabilities, saying they create advanced munitions that can intercept missiles. This, he noted, is crucial for national safety.

Lockheed Martin has been recognized as the top defense contractor globally, largely due to its 2024 revenue figures, according to defense industry sources.

These remarks came shortly after the White House shared its plans—announced on August 22—to acquire a 10% stake in Intel through a deal with a domestic chip manufacturer. Lutnick elaborated that a key consideration in deciding whether the US should take equity in a company is if it’s “adding basic value” to the business.

“If we’re contributing significant value to your business, I think that’s justifiable. [President] Donald Trump is looking out for Americans,” Lutnick said.

However, he also indicated that the final decision on the equity stake in the defense sector would be left up to Pentagon officials. “What’s the economic impact of that?” Lutnick wondered. He concluded that he’d defer to his Secretary of Defense and Deputy Chief of Defense, who are currently evaluating the situation.

While officials advocate that investing in private companies is vital for enhancing US national security, some experts express concerns about potential repercussions. Additionally, Republican Senator Rand Paul has publicly criticized the Intel deal, calling it a ” misguided notion.” In a recent social media post, he questioned the government’s role in ownership of private enterprises, saying it’s a troubling concept.