U.S. News: Trump Assails Defense Companies

 

 

“President Trump lashed out at U.S. weapons manufacturers Wednesday, announcing new restrictions on executive pay and stock buybacks while also threatening to cancel contracts with one of the country's largest defense contractors.

 

An executive order posted Wednesday evening said companies "are not permitted in any way, shape, or form to pay dividends or buy back stock, until such time as they are able to produce a superior product, on time and on budget."

 

Earlier Wednesday, Trump said in a Truth Social post that he would limit executive pay to $5 million. However, the dollar figure wasn't included in the executive order. It wasn't clear how the administration intended to carry out the order beyond using the enforcement tools already available to Pentagon officials.

 

Trump also singled out contractor RTX in a separate Truth Social post, saying that the company "has been the least responsive" to the Pentagon's needs.

 

Either the company "steps up and starts investing in more upfront Investment like Plants and Equipment, or they will no longer be doing business with" the Pentagon, Trump added.

 

In his Truth Social post, Trump also said that the $5 million pay limit was a "mere fraction of what [executives] are making now."

 

An RTX spokesman declined to comment.” [1]

 

The most difficult problem from Trump for these companies is peace produced by Trump. 

 

The statement that "peacetime is worst time for the defense industry" reflects the common perspective that a lack of large-scale conflicts generally leads to reduced military budgets, fewer new procurement programs, and increased pressure on defense companies to cut costs or consolidate.

 

During peacetime, governments often cut back on military spending to focus on other priorities, such as education or infrastructure. This reduction in funding creates several challenges for the defense industrial base:

    Shrinking Industrial Base: As demand for military equipment decreases, some defense contractors may struggle to sustain operations, leading to layoffs, facility closures, and industry consolidation.

    Reduced Innovation Incentives: The urgency for rapid technological advancements is lower in peacetime, which can slow the pace of research and development of next-generation weaponry.

    Challenges in Readiness: While a peacetime military focuses on training, maintenance, and deterrence, the skills and manufacturing capabilities needed for full-scale wartime production can become rusty or lost entirely if not properly maintained.

    Difficulty Maintaining an Experienced Workforce: Military personnel and leaders may seek more attractive civilian positions, and defense industry workers face job insecurity, making it difficult to retain talent.

 

1. U.S. News: Trump Assails Defense Companies. Weisgerber, Marcus; FitzGerald, Drew.  Wall Street Journal, Eastern edition; New York, N.Y.. 08 Jan 2026: A2.