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Trump Vows to Block Buybacks and Dividends at Defense Contractors to Speed Weapons Production

Uncertainty over legal authority to enforce the restrictions is the immediate question.

Overview

  • In a Truth Social post, the president said he will not permit defense companies to issue dividends or repurchase shares until production and maintenance improve.
  • He also proposed capping defense‑industry executive compensation at $5 million annually until firms build new plants and boost output.
  • Shares of General Dynamics, Lockheed Martin and Northrop Grumman fell about 2% following the announcement, according to market reports.
  • The move follows a public demand to accelerate weapons delivery, with Trump telling contractors at a GOP retreat that long wait times for aircraft and helicopters are unacceptable.
  • Implementation details and industry or Pentagon responses have not been outlined, and allied concern has risen following recent Arctic remarks that prompted a seven‑nation statement backing Denmark and Greenland.