logo
Trump Administration Seeks New Allies for Golden Dome Defense Program Amid Musk Fallout

Trump Administration Seeks New Allies for Golden Dome Defense Program Amid Musk Fallout

The Trump administration is actively expanding its list of potential partners for the Golden Dome missile defense system, signaling a shift away from heavy reliance on Elon Musk's SpaceX. Sources say defense officials are now courting Amazon's Project Kuiper and major military contractors to diversify involvement in the $175 billion initiative.
This move follows a breakdown in relations between US President Trump and Musk, culminating in a public dispute on June 5. Even before the fallout, the Pentagon and White House had quietly begun seeking alternatives to avoid overdependence on SpaceX, which currently leads with its Starlink and Starshield satellite networks supporting military communications.
SpaceX, while still favored for launch contracts due to its record of over 9,000 satellite deployments, may see its share in the project reduced. Musk previously stated the company had not bid for Golden Dome and prefers to focus on space exploration. The company declined to comment further.
Amazon's Project Kuiper, though still in early deployment with only 78 of a planned 3,000 satellites launched, has drawn new interest from the Pentagon. Executive Chairman Jeff Bezos confirmed earlier that Kuiper's constellation would have defense applications. A company spokesperson declined to comment on current talks.
Meanwhile, traditional defense firms including Lockheed Martin, Northrop Grumman, and L3Harris are actively in discussions to support the Golden Dome. Lockheed said it is ready to assist, while L3Harris noted increased demand for its missile tracking systems. Northrop is developing a space-based interceptor, enhancing the shield's strike-back potential from orbit.
The administration's outreach now includes emerging space tech firms like Rocket Lab and Stoke Space. Officials confirm that as the program matures, individual launch contracts will be opened for competitive bidding. A senior U.S. official said Kuiper is considered a top candidate for satellite deployment.
Congress has already increased satellite funding, granting the U.S. Space Force $13 billion to accelerate production. The first $25 billion allocation under Trump's defense spending bill is expected soon. Security concerns remain, however, as commercial satellites must be fortified against cyber threats and electronic warfare.
Golden Dome, modeled after Israel's Iron Dome but on a global scale, is central to Trump's rapid defense push. Under a directive from Defense Secretary Pete Hegseth, Space Force General Michael Guetlein must deliver a complete implementation plan within 120 days of his July 17 Senate confirmation.
The program's future could reshape space militarization and global defense dynamics, while also redefining the tech-defense industry landscape amid political shifts and rivalries.
(With inputs from agencies)
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Malaysia cuts growth forecast on tariff volatility
Malaysia cuts growth forecast on tariff volatility

Straits Times

timean hour ago

  • Straits Times

Malaysia cuts growth forecast on tariff volatility

Bank Negara Malaysia now sees the economy expanding by 4 per cent to 4.8 per cent, lower than its previous forecast of 4.5 per cent to 5.5 per cent. KUALA LUMPUR - Malaysia's central bank lowered its growth projection for 2025 as it contends with the fallout from US President Donald Trump's tariffs. Bank Negara Malaysia now sees the economy expanding within the range of 4 per cent to 4.8 per cent, lower than its previous forecast of 4.5 per cent to 5.5 per cent. It also trimmed its inflation forecast this year to 1.5 per cent to 2.3 per cent, from 2 per cent to 3.5 per cent, amid a moderation in cost and demand outlook. 'The updated growth projections account for various tariff scenarios, ranging from a continued elevation of tariffs to more favourable trade negotiation outcomes,' Bank Negara said in a statement on July 28. 'This forecast remains subject to uncertainties surrounding the global economy, both on the downside and upside.' Favourable trade negotiation outcomes, pro-growth policies in major economies, continued demand for electrical and electronic goods, and robust tourism activity could raise Malaysia's export and growth prospects, it added. The revised forecast comes as Malaysia seeks to lower US tariffs to less than 20 per cent, after Mr Trump increased a threatened levy on the South-east Asian country to 25 per cent. The country has until Aug 1 to conclude negotiations, and is optimistic of reaching a deal. Bank Negara said Malaysia is facing external headwinds from a position of strength, pointing to resilience in the economy based on advanced estimates in the second quarter. Domestic demand will continue to support growth going forward, it said. Top stories Swipe. Select. Stay informed. Singapore Tanjong Katong sinkhole backfilled; road to be repaved after LTA tests Singapore MRT platform screen doors at 15 underground stations to undergo renewal Singapore 'Medium risk' of severe haze as higher agricultural prices drive deforestation: S'pore researchers Singapore Jail for former pre-school teacher who tripped toddler repeatedly, causing child to bleed from nose Singapore Police statements by doctor in fake vaccine case involving Iris Koh allowed in court: Judge Singapore Authorities say access to Changi intertidal areas unaffected by reclamation, in response to petition Singapore SMRT reports unauthorised post on its X account, says investigation under way Singapore No change to SIA flights between S'pore and Cambodia, S'pore and Thailand, amid border dispute Inflationary pressure from global commodity prices is expected to remain limited, contributing to moderate domestic cost conditions, the central bank said. The impact of local policy measures is also likely to remain contained, it added. BLOOMBERG

Defiant Fed chief to send clear signal he calls the shots on US monetary policy
Defiant Fed chief to send clear signal he calls the shots on US monetary policy

Business Times

timean hour ago

  • Business Times

Defiant Fed chief to send clear signal he calls the shots on US monetary policy

[WASHINGTON] US President Donald Trump has gone to extraordinary lengths to pressure US Federal Reserve chairman Jerome Powell to cut interest rates, but Trump's decision to feud with the central banker is having the opposite of its intended effect. Anyone who watched the both of them during Trump's tour of the Fed's building renovation project on Thursday (Jul 24) could easily tell that the two are on a collision course. Powell, however, remains unbowed. Rather than being defensive when Trump confronted him about the budget overrun of the renovation, Powell instead corrected Trump on his cost estimates. Trump is bound to keep berating Powell until his term ends in May 2026, and Powell is very unlikely to cut rates any time soon. As the central bank's Federal Open Market Committee prepares to meet this week, Wall Street economists are expecting the benchmark rate to stay in a range of between 4.25 and 4.5 per cent for the fifth straight meeting. Markets are likely to await Powell's press conference on Wednesday to gauge whether this is a 'dovish' hold, where the rate-setting committee leans towards a rate cut as the next move, or a 'hawkish' hold, where the committee is becoming more concerned about inflation. One brokerage said that Powell will likely keep his cards close to his chest. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'We expect the Fed to maintain maximal optionality at its July meeting,' said economists at Bank of America Global Research, in a note to clients. 'Powell would prefer to see the July data before potentially guiding the markets for September at (the Fed's annual economic symposium in) Jackson Hole.' The economists added that 'markets will be focused on whether Powell underscores the Fed's desire to cut rates this year, or if he remains non-committal'. Nonetheless, Powell could give a hawkish signal if he emphasises the continued threat of tariffs, or a dovish one 'if he focuses on the stability of services inflation and expectations'. In the second-quarter earnings season, most companies – with rare exceptions such as German automaker Volkswagen, which is heavily dependent on US exports – seem to be taking tariffs in their stride. Of course, that could simply mean that US households are bearing more of the pain as corporations successfully pass on the costs of new tariffs. While Trump appears to have succeeded in forcing a new protectionist trade regime on the world without the kind of market meltdown that seemed imminent in the aftermath of his 'Liberation Day' in April, the Fed and other economists still view short-term or even long-term consumer-price increases as a likely result. At his press conference this Wednesday, Powell is likely to flex the Fed's muscle as an independent agency. Any sign that he was bowing to Trump's pressure campaign would represent more than reputational damage. The Fed has the ability to act as the backstop of the US Treasury market and only as long as market participants trust the central bank to police inflation. If markets sniffed out signs that the Fed had shifted its mission to a fiscal one – concentrating solely on economic stimulus, as Trump seems to be advocating, and as less influential central banks elsewhere often do – the Treasury market would simply cease responding to the Fed. This happened in the 1970s, when inflation was out of control. In those years, Treasury yields, and hence mortgage rates and other consumer loans, spiked above 10 per cent. 'We think Trump's pressure on the Fed to cut rates makes rate cuts less likely,' said strategists at BNP Paribas. The pressure campaign has made Treasury markets jumpy, however, because of fears about the role of politics at the Fed, they said. Powell pushed back on Trump's esimates of renovation costs on Thursday's tour of the Fed building. This week, he's likely to push back again to remind global markets – and more importantly, Trump – who calls the shots on US monetary policy.

Musk says Tesla, Samsung Electronics sign US$16.5 billion chip supply deal
Musk says Tesla, Samsung Electronics sign US$16.5 billion chip supply deal

Business Times

time2 hours ago

  • Business Times

Musk says Tesla, Samsung Electronics sign US$16.5 billion chip supply deal

[SEOUL] Tesla CEO Elon Musk said the US automaker had signed a US$16.5 billion deal to source chips from Samsung Electronics, a move expected to bolster the South Korean tech giant's loss-making contract manufacturing business. Samsung shares rose more than 4 per cent after the news. 'Samsung's giant new Texas fab will be dedicated to making Tesla's next-generation AI6 chip. The strategic importance of this is hard to overstate,' Musk said in a post on X on Monday. If Musk was referring to Samsung's upcoming Taylor, Texas, plant, the deal could revive the project that has faced delays amid Samsung's struggles to retain and win major customers. 'Samsung agreed to allow Tesla to assist in maximizing manufacturing efficiency. This is a critical point, as I will walk the line personally to accelerate the pace of progress. And the fab is conveniently located not far from my house,' Musk said on his social media platform. Samsung had earlier announced the US$16.5 billion chip supply deal without naming the client, saying the customer had requested confidentiality about the details of the deal, which will run through the end of 2033. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Three sources briefed about the matter told Reuters that Tesla was the customer for the deal. The deal comes as Samsung faces mounting pressure in the race to produce artificial intelligence chips, where it trails rivals such as TSMC and SK Hynix. This lag has weighed heavily on its profits and share price. Samsung, the world's top memory chip maker, also makes logic chips designed by customers through its foundry business. Pak Yuak, an analyst at Kiwoom Securities, said the latest deal would help reduce losses at Samsung's foundry business, which he estimated exceeded 5 trillion won (S$4.6 billion) in the first half of the year. Analysts say Samsung has struggled with the defection of key clients to TSMC for advanced chips. TSMC counts Apple, Nvidia and Qualcomm among its customers. The Samsung-Tesla deal may also be significant for South Korea, which is seeking US partnerships in chips and shipbuilding amid last-ditch efforts to reach a trade deal to eliminate or reduce potential 25 per cent US tariffs. Samsung is grappling to boost production yields of its latest 2-nanometer technology, but the order is unlikely to involve the cutting-edge tech, said Lee Min Hee, an analyst at BNK Investment & Securities. Samsung has been losing market share to TSMC in contract manufacturing, underscoring technological challenges the firm faces in mastering advanced chip manufacturing to attract clients like Apple and Nvidia, analysts said. REUTERS

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store