Summary
President Donald Trump has warned U.S. defense contractors to limit executive salaries and speed up military equipment production. He criticized Raytheon for not meeting military needs quickly and for prioritizing shareholder spending. Trump has proposed increasing the U.S. defense budget significantly by 2027.
Key Facts
- President Trump warned defense contractors about profiteering and urged them to cap executive pay.
- He emphasized the need for faster production of military equipment.
- Trump singled out Raytheon, now known as RTX, as slow in meeting military demands.
- Trump suggested that defense companies use profits for building military equipment instead of relying on loans or government funding.
- Since his second term, Trump has adopted a direct approach to businesses connected to national security.
- Trump's statement impacted defense contractor stocks due to future uncertainty.
- Trump proposed raising the U.S. defense budget to $1.5 trillion by 2027.
- He criticized large executive pay packages in the defense industry while calling for more construction investment.
