Trump to Demand Production Surge From Defense Chiefs Amid Iran Talks

United States President Donald Trump is scheduled to meet with top executives from the largest U.S. defense contractors on Wednesday against the backdrop of ongoing peace talks with Iran.

The White House meeting follows a March 6 gathering and will include leaders from Lockheed Martin, RTX, BAE Systems, Boeing, Honeywell Aerospace, L3Harris, and Northrop Grumman, according to CBS News.

The administration has intensified pressure on these manufacturers to prioritize production and domestic manufacturing capabilities over shareholder payouts as geopolitical negotiations proceed.

Contractor Payouts Under Scrutiny

A January executive order issued by Trump sought to curtail defense contractor dividend payments and stock buybacks.

Congress is currently considering legislation to codify these provisions into law.

Despite the administration's directive, Northrop Grumman and RTX increased their dividends to shareholders by roughly 7 percent in May.

While RTX and Lockheed Martin halted stock buybacks, Northrop Grumman offered investors a relatively small buyback earlier this year.

Boeing has not participated in share buybacks or issued a dividend since 2020.

A source familiar with the matter indicated that the president will demand specific answers from Northrop Grumman during the meeting on Wednesday.

Defense Production Constraints

The meeting comes after Trump invoked the Defense Production Act earlier this month to accelerate weapons manufacturing.

In a June 11 memorandum to Defense Secretary Pete Hegseth, Trump cited systemic constraints in the munitions industrial base.

He highlighted limited production capacity, fragile supply chains, long-lead dependencies, and production bottlenecks.

The president noted that these shortfalls risk impairing the U.S. ability to produce, sustain, and expand the availability of munitions and equipment required for national defense.