Switzerland Confirms F-35A Purchase Despite Rising Costs
ByAinvest
Wednesday, Aug 13, 2025 10:10 am ET1min read
LMT--
The Swiss government stated that discussions with the U.S. did not result in a fixed price, making it impossible to avoid the additional costs. The price of the jets would ultimately depend on inflation in the United States, global commodity prices, and other factors such as price increases due to the tariffs imposed by the U.S. worldwide [1].
The Swiss government chose the F-35A as its next-generation fighter plane in 2021, expecting a fixed price of around 6 billion Swiss francs ($7.47 billion) for 36 jets. However, the U.S. later clarified that this sum was a misunderstanding. Talks with the United States to avert the total sum from potentially increasing by $650 million to $1.3 billion showed it was impossible for Switzerland to assert a fixed price [2].
Switzerland is now examining various options, including whether the current air defense requirements still correspond to the principles on which the evaluation of the F-35A was based. The government will complete this review by the end of November [2].
Politicians from across parties in Switzerland are considering canceling the order due to the high cost and geopolitical realities, with some calling for the immediate cancellation of the contract [3]. The deal, worth up to $9.1 billion, has been contentious, and the imposition of a 39% tariff rate has strengthened voices calling for the purchase to be reconsidered or withdrawn [3].
References:
[1] https://finance.yahoo.com/news/swiss-see-risk-tariffs-increasing-131925705.html
[2] https://www.bloomberg.com/news/articles/2025-08-13/swiss-face-higher-fighter-jet-cost-as-us-squeezes-government
[3] https://www.ainvest.com/news/swiss-politicians-seek-cancel-35-deal-tariffs-geopolitical-shifts-2508/
Switzerland confirms purchase of 36 F-35A fighter jets from Lockheed Martin despite uncertain costs. The initial estimate was around $7.47bn, but the cost could rise by $650m to $1.3bn due to inflation, rising raw material prices, and new US customs tariffs. The Swiss government says discussions with Washington did not make it possible to avoid these additional costs.
Switzerland has reaffirmed its commitment to purchasing 36 F-35A Lightning II fighter jets from Lockheed Martin, despite the uncertain costs associated with the procurement. The initial estimate for the deal was around $7.47 billion, but the cost could rise by $650 million to $1.3 billion due to inflation, rising raw material prices, and new U.S. customs tariffs imposed on Switzerland [1].The Swiss government stated that discussions with the U.S. did not result in a fixed price, making it impossible to avoid the additional costs. The price of the jets would ultimately depend on inflation in the United States, global commodity prices, and other factors such as price increases due to the tariffs imposed by the U.S. worldwide [1].
The Swiss government chose the F-35A as its next-generation fighter plane in 2021, expecting a fixed price of around 6 billion Swiss francs ($7.47 billion) for 36 jets. However, the U.S. later clarified that this sum was a misunderstanding. Talks with the United States to avert the total sum from potentially increasing by $650 million to $1.3 billion showed it was impossible for Switzerland to assert a fixed price [2].
Switzerland is now examining various options, including whether the current air defense requirements still correspond to the principles on which the evaluation of the F-35A was based. The government will complete this review by the end of November [2].
Politicians from across parties in Switzerland are considering canceling the order due to the high cost and geopolitical realities, with some calling for the immediate cancellation of the contract [3]. The deal, worth up to $9.1 billion, has been contentious, and the imposition of a 39% tariff rate has strengthened voices calling for the purchase to be reconsidered or withdrawn [3].
References:
[1] https://finance.yahoo.com/news/swiss-see-risk-tariffs-increasing-131925705.html
[2] https://www.bloomberg.com/news/articles/2025-08-13/swiss-face-higher-fighter-jet-cost-as-us-squeezes-government
[3] https://www.ainvest.com/news/swiss-politicians-seek-cancel-35-deal-tariffs-geopolitical-shifts-2508/

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