Trump Pentagon weighing equity stakes in defense contractors like Lockheed, says Lutnick

Lutnick: Trump Pentagon is 'thinking' taking stakes in defense contractoquawk BoxTop officials at the Pentagon are "thinking " whether the U.S. should acquire equity stakes in leading defense contractors such as Lockheed Martin, Commerce Secretary Howard Lutnick said Tuesday.The Cabinet secretary, in an interview on CNBC's "Squawk Box," revealed the Defense Department's interest in taking those stakes days after the U.S. government acquired 10% of Intel stock in a roughly $9 billion deal.Lutnick was asked if the Trump administration would repeat that move with other companies that do with the government."Oh there's a monstrous discussion defense," Lutnick replied.Lockheed, which makes most of its revenue from federal contracts, is "basically an arm of the U.S. government," he said.Read more CNBC coverageFed mum on whether Lisa Cook is at the office after Trump removed her from boardLutnick suggests Cook's refusal to accept Trump firing from Fed supports fraud claimTrump Pentagon weighs taking equity stake in Lockheed, defense names: Lutnick'Our country is in danger': French PM takes confidence vote gamble over budget woesTrump vows new tariffs, chip restrictions on countries with digital taxesTrump tells Fed's Lisa Cook she's fired; she says 'he has no authority to do so'Trump questions whether U.S. can 'do ' in South Korea ahead of president's visitPutin and Zelenskyy have 'no meeting planned,' Russian official Lavrov saysEpstein files released to Congress are mostly 'recycled' documents, Democrat saysTrump administration may deport Kilmar Abrego Garcia to UgandaTrump says furniture tariffs are coming later this yearDOJ releases Ghislaine Maxwell interview; Epstein curer questioned Trump"But what's the economics of that? I'm going to leave that to my Secretary of Defense and the deputy Secretary of Defense.""These guys are on it and they're thinking it," he said.Lutnick added that President Donald Trump is rethinking how the U.S. ought to finance its munitions and other defense capabilities."I tell you, the way it has been done has been a giveaway," Lutnick claimed

His remark could suggest that the Trump administration is considering a major overhaul of Pentagon appriations, which are apved annually by Congress.A Lockheed spokesperson told CNBC in a statement, "As we did in his first term, we are continuing our strong working relationship with President Trump and his Administration to strengthen our national defense."The Pentagon did not immediately respond to CNBC's request for .Lockheed is the world's top defense company by revenue, according to DefenseNews' 2024 list

Other top U.S. contractors include RTX, Northrop Grumman, General Dynamics and Boeing.Trump's move to take ownership of a chunk of Intel, an embattled chipmaker, is a major escalation in his efforts to achieve his economic goals by exerting more and more government control over the private economy.Trump said Monday that he would make similar deals "all day long."Lutnick said Friday that the agreement Trump struck with Intel CEO Lip-Bu Tan "strengthens U.S. leadership in semiconductors, which will both grow our economy and help secure America's nological edge."But the move has drawn heated criticism — including from some conservatives, who warn that Trump's action cuts against free-market principles and poses risks for both Intel and the economy."The most immediate risk is that Intel's decisions will increasingly be driven by political rather than commercial considerations," economist Scott Lincicome of the libertarian Cato Institute wrote in a Washington Post op-ed.Sen

Rand Paul, R-Ky., wrote in an X post, "If socialism is government owning the means of duction, wouldn't the government owning part of Intel be a step toward socialism?"watch now21:1321:13Watch CNBC's full interview with Commerce Secretary Howard LutnickSquawk Box