Trump threatens to cut Raytheon’s government contract
Defense News••business
Key Points:
- President Donald Trump warned Raytheon that he would cut the company's government contracts if it does not speed up weapons production and stop stock buybacks.
- Trump criticized Raytheon for being slow to increase production and prioritizing shareholder spending over Pentagon needs.
- He demanded that Raytheon invest more in plants and equipment or risk losing Pentagon business, with a strict ban on stock buybacks for continued contracts.
- The warning follows a recent $50 billion, 20-year contract awarded to RTX Corp., Raytheon's parent company, for military systems including the Patriot missile defense system.
- Trump also announced plans to propose a $1.5 trillion military budget for 2027, a $600 billion increase, funded by tariffs
