Trump blocks defence company payouts over slow production

Trump blocks defence company payouts over slow production
Personnel work on U.S. Air Force F-35 Lightning II fighter jets parked on the tarmac at the former Roosevelt Roads naval base, in Ceiba, Puerto Rico, January 3, 2026.
Reuters

U.S. President Donald Trump said he will stop defence contractors from paying dividends or buying back shares until weapons production speeds up, criticising the industry for delays and high costs.

Trump also called executive pay “exorbitant and unjustifiable” and proposed a $5 million cap, far below current levels, while urging companies to build new production plants to deliver and maintain military equipment more efficiently.

Shares of defence firms fell after Trump’s remarks, reversing gains following recent high-profile U.S. military operations, including the capture of Venezuelan President Nicolás Maduro and his wife.

Trump did not provide details on how limits on dividends or buybacks would be enforced.

Programmes such as Lockheed Martin’s F‑35 fighter jet and Northrop Grumman’s $140 billion Sentinel missile system have faced delays and cost overruns, highlighting industry challenges.

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