Intel Partnership Defended as Capitalist Move Amid Defense Firm Hints

Howard Lutnik defends Intel deal, calling it capitalism, not socialism. He praises Trump's pro-American economic policies, including record trade deals, tariffs to bring semiconductors home, and strategic partnerships with Intel. Trump clarifies he didn't buy a stake in Intel, but became a partner for free to restore the company's growth and competitiveness in America.

The Trump administration has been making significant strides in bolstering American industries, particularly in defense and semiconductors. US Commerce Secretary Howard Lutnick has defended the recent deal with Intel, characterizing it as a strategic partnership rather than socialism. Lutnick praised President Trump's pro-American economic policies, including record trade deals, tariffs to bring semiconductors home, and strategic partnerships with key industries.

The latest development involves the administration's consideration of acquiring ownership stakes in defense industry giants such as Lockheed Martin and Boeing. This move follows similar interventions, including investments in Intel, reflecting a strategy to bolster domestic enterprises. Lutnick confirmed that the administration is evaluating potential ownership stakes in defense industry firms, including Lockheed Martin Corp, Boeing, and Palantir Technologies [2].

Trump has long argued that digital services taxes discriminate against US tech giants. In response, he threatened to impose fresh tariffs and export restrictions on advanced technology and semiconductors in retaliation against other nations’ digital services taxes. The president's latest act of trade brinkmanship raises uncertainty over tariff rates for US trading partners [1].

Earlier this summer, Canada backed down from imposing a digital tax hours before it was due to go into effect, after Trump suspended trade talks with the country over what he called an "egregious" tax. Other countries, including the UK, have not rolled back their 2% levy on revenue from search engines, social media services, and online marketplaces. The push comes as the Organization for Economic Cooperation and Development continues to work on an agreement that would abolish digital taxes in favor of an international pact on how to allocate the profits of multinationals for tax purposes [1].

The Trump administration's actions have led to unprecedented White House involvement in private industry, with interventions typically reserved for wartime scenarios or for protecting crucial domestic enterprises during economic difficulties. Recently, the administration also acquired ownership in MP Materials, a rare earths firm, and facilitated an agreement with Nvidia and AMD requiring them to share 15% of their revenue from Chinese sales of previously restricted chips. During his Monday address, Trump expressed his intention to increase government funding in robust American enterprises [2].

References:
[1] https://financialpost.com/pmn/business-pmn/trump-vows-export-curbs-tariffs-in-digital-tax-reprisal
[2] https://timesofindia.indiatimes.com/business/international-business/us-eyes-defence-pie-after-intel-will-trump-administration-buy-stakes-in-lockheed-martin-boeing-commerce-secretary-makes-big-statement/articleshow/123529306.cms