Trump vows to block US defense industry dividends, buybacks for production delays

​​​​​​​By Merve Aydogan

HAMILTON, Canada (AA) - US President Donald Trump on Wednesday warned American defense contractors that dividends, stock buybacks and high executive compensation will be blocked until weapons production and maintenance significantly improve.

Posting on his US social media company Truth Social, Trump said: "All United State Defense Contractors, and the Defense Industry as a whole, BEWARE."

"While we make the best Military Equipment in the World (No other Country is even close!), Defense Contractors are currently issuing massive Dividends to their Shareholders and massive Stock Buybacks, at the expense and detriment of investing in Plants and Equipment," he wrote.

"This situation will no longer be allowed or tolerated!" he added.

Criticizing senior executives, the US president said: "Executive Pay Packages in the Defense Industry are exorbitant and unjustifiable given how slowly these Companies are delivering vital Equipment to our Military, and our Allies."

He demanded that defense firms invest in infrastructure, stating: "From this moment forward, these Executives must build NEW and MODERN Production Plants, both for delivering and maintaining this important Equipment, and for building the latest Models of future Military Equipment."

Until those steps are taken, Trump said that "no Executive should be allowed to make in excess of $5 Million Dollars."

He stressed that production delays threaten national security, declaring, "MILITARY EQUIPMENT IS NOT BEING MADE FAST ENOUGH!"

Trump added that maintenance standards must be improved immediately, demanding they be "spot on, on time."