U.S. President Donald Trump addresses a House Republican retreat at The John F. Kennedy Center for the Performing Arts on January 06, 2026 in Washington, DC. House Republicans will discuss their 2026 legislative agenda at the meeting.
Alex Wong | Getty Images
President Donald Trump on Wednesday said he “will not permit” defense companies to issue dividends or stock buybacks until those firms address his complaints about the industry.
Trump, in a lengthy Truth Social post, also took aim at defense contractors’ executive pay packages, calling them “exorbitant and unjustifiable given how slowly these Companies are delivering vital Equipment to our Military, and our Allies.”
Shares of General Dynamics, Lockheed Martin and Northrop Grumman each fell about 2% following Trump’s comments.
It was not initially clear what impact or binding force, if any, Trump’s announcement would have on major defense companies’ financial activities. The White House did not immediately respond to CNBC’s request for additional information.
This is breaking news. Please refresh for updates.
About The Author
