Trump’s equity stake plan excludes major US defense companies
The director of Boeing’s defense unit declared that the proposal of US President Donald Trump to assume government equity holdings in vital industries does not apply to large defense firms. This statement contradicts remarks that had been made before by a senior government official. Steve Parker declared that the government is encouraging the industry to put money into facilities. In a panel discussion that took place at the Reagan National Defense Forum, an annual industry gathering in Simi Valley, California, Parker stated that it is expected that big contractors will be able to handle this without the need for any government assistance.
Parker discussed the possibility that the United States government will invest in exchange for ownership rights. He stated, “It really only applies on the supply chain, particularly for the smaller companies coming through where that might be a way forward for them.”
Parker continued, “I don’t believe it truly applies to the Primes,” by which he was referring to prominent heritage defense contractors such as Boeing, Lockheed Martin, RTX, and Northrop Grumman. The recent multi-billion dollar investments that Boeing has made in St. Louis, Missouri, which is the location of its fighter jet production, were emphasized by Parker. In August, Howard Lutnick, who was the Secretary of Commerce at the time, announced that the Trump administration was contemplating purchasing equity positions in prominent defense contractors, such as Lockheed Martin. This decision led to a surge in the shares of Lockheed, Boeing, and other defense companies.
In order to give priority to the importance of national security in critical industries in which China has achieved considerable dominance, the Trump administration has, this year, secured ownership shares in the chipmaker Intel and the rare earths producer MP Materials. “The government will take stakes in more companies,” is a statement that Trump has made.
