Trump vows to block US defense industry dividends, buybacks for production delays
'Military equipment is not being made fast enough,' says US president
HAMILTON, Canada
US President Donald Trump on Wednesday warned American defense contractors that dividends, stock buybacks and high executive compensation will be blocked until weapons production and maintenance significantly improve.
Posting on his US social media company Truth Social, Trump said: "All United State Defense Contractors, and the Defense Industry as a whole, BEWARE."
"While we make the best Military Equipment in the World (No other Country is even close!), Defense Contractors are currently issuing massive Dividends to their Shareholders and massive Stock Buybacks, at the expense and detriment of investing in Plants and Equipment," he wrote.
"This situation will no longer be allowed or tolerated!" he added.
Criticizing senior executives, the US president said: "Executive Pay Packages in the Defense Industry are exorbitant and unjustifiable given how slowly these Companies are delivering vital Equipment to our Military, and our Allies."
He demanded that defense firms invest in infrastructure, stating: "From this moment forward, these Executives must build NEW and MODERN Production Plants, both for delivering and maintaining this important Equipment, and for building the latest Models of future Military Equipment."
Until those steps are taken, Trump said that "no Executive should be allowed to make in excess of $5 Million Dollars."
He stressed that production delays threaten national security, declaring, "MILITARY EQUIPMENT IS NOT BEING MADE FAST ENOUGH!"
Trump added that maintenance standards must be improved immediately, demanding they be "spot on, on time."
In a separate post, Trump accused the Raytheon defense contractor of being the "least responsive to the needs of the Department of War, the slowest in increasing their volume, and the most aggressive spending on their Shareholders rather than the needs and demands of the United States Military."
"Raytheon seems to think this is the Biden Administration, and this is 'business as usual,' IT’S NOT!" he said.
Demanding that Raytheon "steps up" and "starts investing," the US president warned that "they will no longer be doing business with Department of War."
"Also, if Raytheon wants further business with the United States Government, under no circumstances will they be allowed to do any additional Stock Buybacks, where they have spent Tens of Billions of Dollars, until they are able to get their act together," he added.
In another post, Trump announced that "in these very troubled and dangerous times, our Military Budget for the year 2027 should not be $1 Trillion Dollars, but rather $1.5 Trillion Dollars."
"This will allow us to build the 'Dream Military' that we have long been entitled to and, more importantly, that will keep us SAFE and SECURE, regardless of foe," he said.
Hailing the tariffs applied on countries, Trump stated that the $1.5 trillion military budget would not happen "if it weren’t for the tremendous numbers being produced by Tariffs from other Countries, many of which, in the past, have 'ripped off' the United States at levels never seen before."
Anadolu Agency website contains only a portion of the news stories offered to subscribers in the AA News Broadcasting System (HAS), and in summarized form. Please contact us for subscription options.
