Trump admin signals it’s not done gobbling up ownership of major American companies

Commerce Secretary Howard Lutnick said Tuesday that the Trump administration is “thinking about” taking equity stakes in defense companies.

Lutnick said in a Tuesday interview with CNBC’s “Squawk Box” that “there’s a monstrous discussion about defense” in response to a question about whether there is a “line” on the U.S. government owning stakes in private companies. The Commerce secretary also claimed that American defense contractor Lockheed Martin is “basically an arm of the U.S. government.”

“Lockheed Martin makes 97% of their revenue from the US government,” Lutnick told CNBC. “They are basically an arm of the U.S. government. They make exquisite munitions. I mean, amazing things that can knock a missile out of the air when it’s coming towards you.”

Lockheed Martin was notably ranked as the top defense company in the world by revenue in 2024, according to DefenseNews.

Lutnick’s comments come after the White House announced on Aug. 22 that the U.S. will take a 10% equity stake in Intel under a deal with the U.S.-based chipmaker. He told CNBC that one key factor for the U.S. government to consider whether to acquire equity stakes in companies is whether the country is “adding fundamental value” to a business.

“If we are adding fundamental value to your business, I think it’s fair for [President] Donald Trump to think about the American people,” Lutnick said.

Lutnick, however, told CNBC he would ultimately “leave” the decision of whether to take equity in defense companies to Defense Department officials.

“But what’s the economics of that?” Lutnick added. “I’m going to leave that to my Secretary of Defense [Pete Hegseth] and the Deputy Secretary of Defense [Steve Feinberg]. These guys are on it and they’re thinking about it.”

While the White House is asserting that acquiring equity stakes in private companies is essential to boosting the U.S.’ national security, some experts previously told the Daily Caller News Foundation that such efforts could end badly. Additionally, Republican Kentucky Sen. Rand Paul criticized the White House’s Intel deal in an Aug. 20 X post, writing that it was a “terrible idea.”

“If socialism is government owning the means of production, wouldn’t the government owning part of Intel be a step toward socialism?” Paul wrote in the social media post. “Terrible idea.”

The Commerce Department and the Pentagon did not immediately respond to the DCNF’s request for comment.

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