I did not see this coming at all.... It will be interesting to see if this spirals into other industries as well given his reason of executive pay packages calling it.
"exorbitant and unjustifiable given how slowly these Companies are delivering vital Equipment to our Military, and our Allies"
He could possibly hit really every CEO over this idea. It is a slippery slope hitting companies like this. Since these stocks are part of countless retirement accounts this does hit those.
There has to be a better way to accomplish what he is trying to accomplish.
Maybe tax breaks for increases in production, building new capacity etc.
You could make capital allocation and reinvestment in America one of the determining factors of the bidding process for government contracts.
Why use carrots when you have a huge stick?
Yeah I get it. It's Trump's M.O. threaten extreme repercussions you never intend to follow through on to get what you want. Until you actually have to follow through (like the tariffs) and then say it's a good thing.
I think he genuinely believes in the cleansing power of tariffs.
I mean to be honest you know people dont even realize that with the agreements and everything the 10% that everyone got has remained. People just do not have a clue and because they look at the later ones they dont realize there was a separate one.
Man, I don't blame anyone for not being able to keep track of everything. I trained in trade economics and I haven't kept up with it.
Trump is adopting State Capitalism.
In response to the success of and threat resulting from Chinas State Capitalism.
Simple as that.
Maybe but he did get into a pissing contest with China there early on where he was threating 100% plus tariffs which I am sure he didn't want to carry out. However, he didn't want to look weak by backing down from his threats. In the end both sides had to come up with an offramp where they could say they negotiated a good deal and won for their side.
USA backed down as soon as China blocked the export of refined rare earth showing the US military industrial complex is weak and vulnerable to Chinas expansive mercantile mixed economy model of development.
USA cannot fight a major war any time in the next decade at least without Chinas agreement and support- and China are still blocking all exports of refined rare earths destined to serve any military applications.
Trump made a major blunder own goal.
China has won the trade war and provoked by Trumps tariff bluff has now crippled the US military industrial combine.
The wealth of nations and their citizens is highly derivation of the skill, planning strategic positioning and management of their governments and the US government and its global hegemony has been captured and held hostage to corporate lobbyists for decades and is now facing imminent demise.
Cripple?
Yes- without a secure supply of refined rare earths the US military industrial complex cannot produce much of the high tech war materiel required to fight as modern war, let alone maintain a modern economy. Crippled is perfectly appropriate description of the state the US military industrial complex is in today...though they might not want to acknowledge it and are probably mounting the Venezuela gunboat diplomacy to demonstrate some remaining capacity- but as far as any large scale military conflict of any duration the US military is crippled at least until it can regain secure supply of refined rare earths.
Chairman Trump with another decree. Mao used to pretend to consult with party members first.
I’m guessing this is more of a shot over the bow
Yep, I'll be watching this one. Trying to take on the military industry as a president is like Caligula declaring war on the ocean. Um...what?
He has to try as otherwise Chinas CCP with its stranglehold over refined rare earths and direction of Chinese military and strategic supply chains will continue to eclipse the US military industrial complex.
Trump is now adopting the State Capitalism that China has exercised over the last 30 years... and the USA is a long way behind...its industrial supply chains are severely depleted and highly exposed to the momentum toward hegemonic domination that the Chinese economic and strategic advance presents.
China and Russia see new opportunities as U.S. focuses on Americas, while Europe braces for clash over Greenland.
https://archive.ph/bIPYm
https://www.wsj.com/world/trumps-plan-to-run-the-hemisphere-scares-friends-and-puzzles-foes-819a1841
' “Beijing is captivated by Trump’s interest in spheres of influence of major powers,” said Tong Zhao, a senior fellow at Carnegie China. “It’s interested in exploring whether the U.S. is willing to make major compromises in the Western Pacific, including on the issue of Taiwan and the South China Sea,” if China shows greater deference to the U.S. in the Americas.
The same calculations are in play in Moscow, as Washington pushes Ukraine to accept a peace deal that would satisfy some of Russia’s key demands, including a surrender of territory that Russian forces haven’t been able to capture in four years of war...
The Kremlin’s chief negotiator on Ukraine, Kirill Dmitriev, meanwhile, appeared positively giddy in social-media posts about Trump’s renewed aspirations to annex Greenland, especially after Danish Prime Minister Mette Frederiksen warned that any U.S. military action to seize the island would mean the end of the NATO alliance. Such a breakup, in turn, would create a major boon for Russian ambitions to regain former satellites and possession in Europe, starting with the Baltics—while also spurring an inevitable rapprochement between European nations and China.'
@Cje95 furiously and desperately denies the US is in retreat into a regional hegemony due to its military being crippled buy Chinas stranglehold over strategic supply chains.
Trumps words and actions say otherwise.
Keep calming the peasants @Cje95 - its what you are paid to do after all.
Bold move could shake up defense stocks and set a tricky precedent for other industries.
This situation highlights a broader tension between corporate capital allocation and national security priorities. When a major defense contractor like RTX allocates significant resources toward stock buybacks rather than reinvesting in manufacturing capacity and technological development it can raise questions about long term readiness and the ability to meet future defense needs.
From an investor perspective buybacks often serve to boost per share earnings and shareholder value but they do not directly enhance operational capability. In industries tied closely to government contracts performance and innovation can carry more weight than short term market optics. If the administration is serious about conditioning business ties on increased investment RTX may need to reassess its capital strategy to align more closely with federal expectations.
This could signal a policy trend where defense spending is linked not only to product quality and delivery timelines but also to a company’s commitment to expanding its industrial base. For shareholders the implication is that future returns might rely more heavily on sustainable growth in defense capacity than on financial engineering.
Very interesting I dumped my LMT stock long ago and now I sleep well at night
Trump is increasingly adopting State Capitalism rather similar to China.
Because USA hegemony is under a real threat and challenge from Chinas very successful State capitalism.
All the talk about freedom, democracy and free market capitalism is hollow man bullshit- its all about power wealth and hegemony.
Visitors to the USA from visa free countries like New Zealand must now submit to US immigration examination of their last 5 years social media posts and digital devices and can be expelled with no right of appeal or cause given. So much for the land of the free and freedom of speech.
Trump copying Chinas State Capitalism Autocracy more every day...since China cornered the supply chain of refines rare earths essential to the viability of the US military industrial complex leaving US military seriously incapacitated for at least the next decade.
@Cje95 for comment.
..... I literally posted this.... with comments....
Read
My call for comment is in reaction to my comment...I see you missed that nuance so I now make it explicit since the protocol of a good faith sequential contest of ideas seems foreign to you.
If you had been reading my posts and considering their content in good faith you might have been better prepared for this.
Chinas State Capitalism is beating USAs decrepit and corrupt military industrial complex.
Trump is once again copying Chinas State Capitalism to try to minimise the damage to US power and global hegemony.
Probably too little too late because too many US commentators and 'experts', not to mention Washington commentariat, did not see it coming as they were drunk on US exceptionalism and its serial delusions.
You can't say I didn't try to give you the heads up in advance...now you might finally begin seeing the strategic reality as it is...then again...your penchant for shooting the messenger rather than considering alternative if challenging viewpoints may still blind you...
Respounding S I L E N C E ! ! !
@Cje95 s inability to engage in reasoned sequential debate is evidenced yet again.
'“People are talking in terms like imperialism, neocolonialism, viceroy, terms that they haven’t used in 80 years. There is a new world order and there are spheres of influence in it,” said Sumantra Maitra, founder of Virginia-based Clio Strategic Consulting and a senior fellow at the Center for Renewing America think tank. “We are not going to go to war with other great nuclear powers in their own neighborhood, and it is quite understandable that no one is going to come to the Western Hemisphere because we will mess them up.”
In this new setup, raw strength—military and economic—matters more than ever. And the key reason for Trump’s focus on the Western Hemisphere, his supporters say, is precisely because of the current limits of American power, especially when compared with a rising China.'
https://archive.ph/bIPYm