Trump Administration’s Corporate Stakes Reshape US Economy

The Trump administration’s corporate holdings span critical sectors of the American economy, with strategic investments in companies essential to national security and technological leadership. The government owns stakes in MP Materials Corp., the nation’s primary rare earth provider; Intel Corp., once the dominant chip manufacturer; and Lithium Americas Corp., a key player in the battery supply chain. These positions provide the administration with direct influence over corporate decisions and supply chain security, particularly regarding operations outside the United States.

Perhaps most notably, the administration holds a ‘golden share’ in U.S. Steel Corp., giving it veto power over the company’s proposed merger with Japan’s Nippon Steel. This controlling interest allows the government to protect American steel jobs and maintain domestic production capacity. The arrangement demonstrates how equity ownership has become a tool for implementing industrial policy, with the administration actively shaping corporate outcomes rather than relying solely on regulatory or legislative measures.

The administration’s corporate stakes provide significant leverage in international trade negotiations, particularly with China. With Nvidia Corp.’s Chinese sales in the crosshairs, the government’s position allows it to directly benefit from any trade resolution that improves the chipmaker’s fortunes. Similarly, the administration is considering tariffs on Chinese electric vehicles to protect domestic automakers Ford Motor Co. and General Motors Co., whose CEOs acknowledge the superior quality of Chinese EVs.

For American retailers with massive Chinese operations, including Starbucks Corp. and Walmart Inc., government ownership offers protection against potential retaliation in a trade war. By holding equity in these companies, the administration can safeguard their operations in the world’s most populous nation while maintaining pressure on China. This dual approach—protecting American businesses abroad while shielding them from foreign competition at home—represents a new paradigm in trade policy.

The strategy extends to defense exports, where the United States accounted for 43% of all weapons exports between 2022 and 2024, including approximately 60% of European Union imports. The administration has pressured EU allies to increase defense spending to 5% of GDP, creating opportunities for American defense contractors Lockheed Martin Corp. and Northrop Grumman Corp. The government could potentially seek equity stakes in these companies as it works to expand their international business prospects.

The administration’s growing portfolio of corporate investments has drawn comparisons to Warren Buffett’s Berkshire Hathaway Inc., though with fundamentally different objectives. While Buffett seeks financial returns, the government pursues strategic national interests—securing supply chains, protecting jobs, and maintaining technological superiority. The precedent of government investment in private corporations appears established, with no indication the approach will change in the near future.

Looking ahead, the administration maintains significant leverage to request additional equity stakes in American companies when such positions could increase their business prospects or protect them from overseas competition. The process is already underway across multiple sectors, from critical minerals to advanced manufacturing. This represents a dramatic departure from traditional government-business relations, creating what amounts to a state-influenced capitalism where national security considerations increasingly dictate corporate strategy and market outcomes.