Published On 26 Aug 2025
The administration of United States President Donald Trump is considering taking a stake in domestic defence contractors, including the aerospace company Lockheed Martin.
On Tuesday, Secretary of Commerce Howard Lutnick hinted at the administration making a possible investment in the company as he defended Trump’s push for a greater role in business.
“They’re thinking about it,” Lutnick told the news outlet CNBC when asked if the administration was considering taking pieces of contractors such as Lockheed Martin, Boeing or Palantir Technologies.
While Lutnick cited Pentagon leaders as the source of his information, he also indicated that deals were far from being finalised.
“There’s a lot of talking that needs to be had about, how do we finance our munitions acquisitions?” Lutnick said.
Still, he argued that some private businesses were extensions of the US government. “There’s a monstrous discussion about defence,” he explained. “Lockheed Martin makes 97 percent of their revenue from the US government. They are basically an arm of the US government.”
Lutnick’s statements come on the heels of the Trump administration announcing last week that it had taken a 10 percent stake in the struggling semiconductor chip giant Intel.
Since taking office for a second term, Trump has sought to increase US investments in several key industries, from steel to technology, prompting questions about whether Republicans were drifting from the “small government” platform they are often associated with.
Lockheed Martin, whose shares rose 1.6 percent following the remarks, responded to Lutnick’s comments by saying, “We are continuing our strong working relationship with President Trump and his Administration to strengthen our national defense.”
Boeing declined to comment, while Palantir did not respond to a request for comment. Boeing’s stock was up 2.8 percent. Meanwhile, Palantir reversed a small initial slide of about 1 percent following the remarks, and by midday, was trading up at 1.4 percent.
Lutnick’s comments are the latest example of the White House’s aggressive interventions in the private sector.
Such moves have historically only be