Metrix Pakistan

In an exclusive interview with Fortune magazine published on Monday, May 18, 2026, U.S. President Donald Trump reflected on his administration’s historic corporate intervention last year, stating he "should have asked for more" of a stake in semiconductor giant Intel Corp on behalf of the federal government.

The comments shed light on Trump’s highly transaction-oriented economic philosophy and his vision for a burgeoning American sovereign wealth fund.

The Intel Deal Recapped
The transaction Trump referenced took place in August of last year, marking a radical pivot in how Washington handles corporate subsidies:

The Structuring: Led by Commerce Secretary Howard Lutnick, the Trump administration converted approximately $8.9 billion in planned CHIPS Act grants and Secure Enclave funding into a 9.9% non-voting equity stake (roughly 433 million shares).

The Cost: Trump has frequently boasted on Truth Social that the government effectively "paid zero" for the equity, converting what he labeled a "taxpayer giveaway" (the previous administration's grant structure) into hard corporate ownership.

The Leverage: The deal was struck following immense pressure on Intel CEO Lip-Bu Tan. "He walked in wanting to keep his job, and he ended up giving us $10 billion [in equity] for the United States," Trump recalled.

The "What If" Tariff Scenario & The TSMC Jab
During his Fortune interview, Trump went a step further, claiming that aggressive tariff policies by previous administrations could have completely reshaped the global semiconductor landscape to favor domestic manufacturing:

Protecting Intel: Trump asserted that if past administrations had slapped heavy tariffs on foreign-made chips, domestic buyers would have been forced to source entirely from Silicon Valley icons.

The TSMC Claim: "If that had happened, Intel would now be the world's largest company," Trump stated, specifically targeting Taiwan Semiconductor Manufacturing Co. (TSMC). "Their business [TSMC's] would all belong to Intel now, and Taiwan would not exist," he boldly claimed, referring to the island's massive contract-foundry monopoly.

Building the Sovereign Wealth Fund
Trump’s regret over not taking a 15% or 20% slice of Intel underscores the administration's broader push to build an American Sovereign Wealth Fund, an initiative formalized via executive order earlier this year:

Corporate Arbitrage: Under White House economic advisor Kevin Hassett, the administration is actively looking to replicate the Intel model—using federal leverage, tariffs, and subsidy negotiations to acquire equity in critical infrastructure, aerospace, and AI firms.

Market Reaction: Intel shares remained relatively steady following the publication of the interview. While federal backing has given the struggling chipmaker financial breathing room to build out its domestic foundries, Wall Street remains cautious about the long-term corporate governance risks of having the U.S. government as its largest single shareholder.

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At a high-stakes Group of Seven (G7) gathering in Paris, United States Treasury Secretary Scott Bessent announced on Monday, May 18, 2026, that he will formally call on member nations to align with the U.S. sanctions regime against Iran.

The move represents a coordinated transatlantic effort to cut off the financial lifelines supporting Tehran's military apparatus as the regional war, now in its tenth week, continues to destabilize global energy markets.

The Economic Directive: "Starving the War Machine"
Bessent’s remarks ahead of the ministerial sessions lay out a strict compliance mandate aimed at closing international loopholes:

Unified Front: The U.S. is urging G7 finance ministers and central bank governors to adopt a uniform enforcement mechanism, preventing European and Asian financial institutions from facilitating veiled transactions for Tehran.

Targeting the Capital: "We must keep financing away from what can only be described as Iran’s war machine," Bessent told reporters, emphasizing that secondary sanctions will be aggressively applied to any entities attempting to bypass the current blockade.

The Global Risks: The call comes amidst a severe global bond selloff and mounting inflation concerns, driven largely by the prolonged closure and restricted transit protocols within the Strait of Hormuz.

Leveraging the Beijing Summit Success
Crucially, Bessent tied the timing of this G7 push to the diplomatic momentum generated by last week’s bilateral meetings in China:

The China Factor: The Treasury Secretary hailed President Donald Trump’s delegation trip to Beijing as "very successful."

Superpower Alignment: By securing a rare joint declaration from President Xi Jinping that "Iran can never possess a nuclear weapon," Washington believes it has sufficiently isolated Tehran economically, leaving European partners with little diplomatic cover to resist stricter sanctions alignment.

European Caution vs. American Pressure
While there is a shared consensus on the urgency of de-escalation, a clear friction exists regarding the method:

The European Stance: European Economic Commissioner Valdis Dombrovskis and German Finance Minister Lars Klingbeil acknowledged the severe threat the conflict poses to global trade. However, Klingbeil pointedly noted that the European path remains focused on "cooperation rather than confrontation," leaning on international rule of law and partnerships to reopen the shipping lanes.

The Immediate Urgency: Host nation France, represented by Finance Minister Roland Lescure, reiterated that the immediate priority of the Paris summit is to mitigate the macroeconomic fallout—specifically the volatility that recently pushed Brent and WTI crude benchmarks above $100 a barrel.

Tehran’s Defiant Counter
Responding almost instantly to Bessent's statements from Paris, Iranian Foreign Ministry Spokesman Esmaeil Baghaei warned that economic threats would backfire:

"New Surprises": Baghaei declared that if the sanctions push triggers an expansion of hostilities, Iran's armed forces have "new surprises for the enemy."

The Sovereign Stance: Tehran maintains that decades of economic pressure have proven Washington cannot "dissuade Iran from pursuing its rights," even as its negotiators simultaneously attempt to pitch a 14-point peace proposal via Pakistani mediators in a bid for selective sanctions relief.

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