Something unprecedented is happening in American capitalism. The Trump Administration equity stakes in major U.S. companies represent the most aggressive government intervention in markets since the 2008 financial crisis. We’re not talking about emergency bailouts here – this is the federal government deliberately taking ownership positions in five public corporations across critical sectors. Think about what that means for a moment. Intel Corp now has Uncle Sam as a 10% owner. MP Materials, the rare earth producer, handed over a 15% stake to Washington. The government also owns 10% of Lithium Americas Corp and 10% of Trilogy Metals Inc. Then there’s US Steel Corporation, where they hold what’s called a “golden share”.
Here’s the administration’s logic: America needs to maintain domestic production of materials used in modern weaponry and artificial intelligence. They’ve reportedly considered tapping a $550 billion investment fund for semiconductors and critical minerals. But let’s be honest – this raises some serious questions about how far government should reach into private enterprise. Is this smart strategic planning, or are we watching the birth of American state capitalism?
The Trump Administration’s Equity Portfolio
President Trump’s strategic investment portfolio spans five critical industries. Each move targets specific weaknesses that have left America vulnerable to foreign manipulation and supply chain disasters.
Intel: A 10% stake to secure chip manufacturing
Here’s where things get interesting. The federal government didn’t just hand Intel a check – they converted $10 billion in subsidies into equity ownership. Smart move. This arrangement ensures taxpayers actually get something back if Intel succeeds, rather than just watching their money disappear into corporate coffers. Intel must hit strict production targets at their Arizona and Ohio facilities. No excuses, no delays. Their advanced chip manufacturing capabilities remain absolutely critical for military systems and AI development. You can’t run a modern defense system without these chips, and Intel knows it.
MP Materials: Rare earths and national security
MP Materials operates the only rare earths mining facility in America at Mountain Pass, California. Think about that – the only one. The Trump Administration grabbed a 15% ownership stake for $400 million, and honestly, it might be the bargain of the century.
This investment directly challenges China’s stranglehold on rare earth processing. These minerals power missile guidance systems, fighter jet engines, and pretty much every piece of advanced military hardware you can imagine. MP Materials now processes everything domestically instead of shipping raw materials to Chinese facilities. That’s the kind of strategic thinking that should have happened decades ago.
Lithium Americas: Powering the EV future
The government’s 10% stake in Lithium Americas focuses on Nevada’s Thacker Pass project. This site contains North America’s largest known lithium deposit – meant to be a game-changer for electric vehicle batteries and energy storage systems. Federal ownership is being leveraged to secure domestic lithium supply for defense applications and consumer electronics. When you consider how critical lithium has become, this investment is supposed to protect America. No more begging foreign suppliers for materials that power our future.
Trilogy Metals: Unlocking Alaska’s mineral wealth
Trilogy Metals gives the administration access to Alaska’s massive copper resources. Their Arctic Project hosts significant copper, zinc, and precious metals deposits that support electrical infrastructure and advanced weapons systems. The investment reduces dependence on foreign copper imports at a time when electrical infrastructure demands are exploding. Alaska’s mineral wealth has been sitting there for decades, and this is their way of doing something about it.
US Steel: The golden share and veto power
US Steel operates differently than the other investments. The “golden share” mechanism grants the government special veto rights over key corporate decisions. The administration can block foreign acquisitions or plant closures that would gut domestic steel production. This protects steel production capacity for military equipment and critical infrastructure. When you’re talking about national defense, you can’t afford to let foreign competitors buy up your steel companies or shut down domestic production. The golden share gives Washington the power to say no when necessary. Kind of authoritative, on the outside looking in.
Why These Companies Were Chosen
The administration didn’t throw darts at a board to pick these companies. Each investment targets a specific weakness in America’s industrial foundation that could cripple us during a crisis.
Semiconductors as strategic assets
Here’s the uncomfortable truth: semiconductors form the backbone of the digital economy, and we’ve been asleep at the wheel. All major U.S. defense systems rely on these chips for their performance. The erosion of domestic semiconductor capabilities represents a direct threat to national defense.
The numbers are staggering. U.S. semiconductor manufacturing declined to around 10% of global production. This decline left America vulnerable to supply disruptions that could shut down everything from fighter jets to smartphones. The most advanced AI systems require 7nm to 5nm chips not currently made in America. While we were busy outsourcing our chip production, China invested heavily to overtake the U.S. in semiconductor technology. Without intervention, this gap would continue to widen until we’re completely dependent on foreign competitors for our most critical technology.
Breaking China’s grip on critical minerals
China dominates global refining for essential minerals, and they’re not shy about using that power as a weapon. Their control extends over 70% of rare earth mining but over 90% of refining capacity. Even more concerning, they produce 92% of neodymium-iron-boron magnets used in everything from submarines to electric vehicles.
Beijing has repeatedly weaponized this control when it suits their interests. Remember 2010, when China restricted rare earth exports to Japan during a territorial dispute? They did it again in 2023-2024, imposing export controls on germanium and gallium. These actions revealed America’s dangerous vulnerability. Critical minerals power missile guidance systems, fighter jets, and other defense applications. How do you fight a war when your enemy controls the materials needed to build your weapons?
Domestic supply chains and economic resilience
The Trump Administration seeks to reduce dependence on foreign supply chains, and frankly, it’s about time. Previous policies left America reliant on competitors for strategic materials. The military faced uncertain access to essential components – a situation that’s unacceptable for any superpower.
The new strategy aims to revitalize U.S. manufacturing capabilities. Right now, U.S. firms depend on sources in Taiwan and South Korea for advanced chips. Meanwhile, the U.S. has very little onshore capability for assembly, testing, and packaging. This approach targets these specific gaps before they become fatal flaws.
Energy transition and electrification goals
Energy storage solutions are reshaping America’s power industry, but clean energy technologies require secure mineral supplies. Consider this: lithium producers in 2021 met just 5% of global demand. That’s a massive supply-demand imbalance waiting to explode. The strategic investments aim to change that equation. The U.S. is on track to supply more than one-fifth of global lithium demand outside of China by 2030. Beyond lithium, rare earth magnets power electric vehicle motors and wind turbines. Securing these resources ensures America can meet its energy transition goals without depending on rivals who might cut us off when tensions rise.
The Trump Administration Now Owns:
— The Kobeissi Letter (@KobeissiLetter) October 6, 2025
1. 10% equity stake in Intel, $INTC
2. 15% equity stake in MP Materials, $MP
3. 10% equity stake in Lithium Americas, $LAC
4. 10% equity stake in Trilogy Metals, $TMC
5. A “golden share” in US Steel Corporation
6. Floated idea of equity…
Just in🚨
— Nancy Pelosi Stock Tracker ♟ (@PelosiTracker_) October 6, 2025
Trump's Government to take 10% stake in Trilogy Metals Inc $TMQ
As of now, no politician ever bought $TMQ but we'll keep an eye on it form here pic.twitter.com/NGM0zJRSuX
Is This the New Normal or a Crisis Playbook?
The uncomfortable truth is that government ownership in private companies fundamentally changes the game. What we’re seeing isn’t just policy – it’s a complete rewrite of how America does business. Historically, Washington stepped in during crises, fixed what was broken, then got out. These Trump Administration equity stakes? They look permanent.
TARP vs. long-term state ownership
Here’s the difference that should worry everyone. The Troubled Asset Relief Program (TARP) came with built-in exit ramps. Those weren’t suggestions – they were statutory sunset provisions. The government bought in, stabilized the system, then sold off company stakes once the crisis passed. TARP ultimately generated $15.3 billion in profit for taxpayers. Clean, profitable, and temporary.
Current equity positions have no such guardrails. No sunset clauses, no exit timeline, no plan to get out. This shift toward long-term state capitalism represents the most fundamental departure from traditional American economic policy since the New Deal. The question isn’t whether this works – it’s whether this is still America.
Concerns about government overreach
The American people see what’s happening and they don’t like it. Recent polling shows 54% believe government tries to do too many things that should remain private. Even more telling: 81% of Republicans and 59% of independents feel the federal government has too much power. Those aren’t fringe numbers. That’s mainstream America rejecting this approach.
Critics raise valid concerns about distorted competition. When the government owns a piece of your competitor, how do you compete on a level playing field? Companies with government stakes receive preferential treatment – that’s not conspiracy theory, that’s basic economics. The market stops being a market when the referee owns some of the teams.
Government ownership creates an impossible conflict. Private shareholders want maximum returns and smart business decisions. Politicians want votes, favorable headlines, and political wins. These goals don’t align – they clash violently. This tension will destroy value. Look at any historical example of persistent political interference – productivity and efficiency suffer every single time. Corporate decisions get made in Washington boardrooms instead of business boardrooms. That’s not capitalism, that’s central planning with extra steps.
Exit strategies: will the government divest?
Other countries at least pretend to have exit strategies. The Indian government recently set a divestment target of Rs 47,000 crore for FY26, creating opportunities for investment banks. Even announcing preliminary timetables helps ensure focused and disciplined management.
The Trump Administration? Radio silence on exit plans. No divestment strategy. No timeline for getting out. Without clear exit strategies, government ownership risks becoming permanent – and that risk is starting to look like the plan.This isn’t temporary crisis management. This is the permanent establishment of American state capitalism, whether we want it or not.
Where Do We Go From Here?
The Trump Administration’s equity stakes represent something we haven’t seen before in U.S. economic policy. This isn’t your typical government intervention during a financial meltdown – it’s a deliberate strategy to own pieces of America’s industrial backbone. Here’s what’s troubling: unlike TARP or other crisis responses, nobody’s talking about exit strategies. When will the government sell these stakes? What happens when political priorities clash with business decisions? The administration hasn’t provided answers to these fundamental questions.
It seems this strategy addresses real threats to America’s industrial capacity. China’s grip on critical minerals and semiconductor manufacturing poses genuine risks to national defense. Direct ownership gives Washington leverage it wouldn’t have otherwise. Critics worry about government overreach, and they have valid points. Political interference in corporate decision-making rarely ends well. Look at any state-owned enterprise around the world – they tend to prioritize political goals over efficiency and innovation.
But what’s the alternative? Remain dependent on adversaries for materials that power our defense systems? Hope that free market forces alone will rebuild domestic supply chains that took decades to erode? The real test comes when these companies face difficult choices. Will they optimize for shareholder returns or political objectives? Can they maintain the innovation and efficiency that made them attractive investments in the first place?
Future administrations will inherit these ownership stakes whether they like them or not. The precedent is set. American capitalism just took a sharp turn toward state involvement, and there’s no clear path back to pure private enterprise. This experiment’s success depends entirely on maintaining operational independence for these companies while achieving strategic goals. It’s a delicate balance that few governments have managed successfully. Time will tell if America can be different.