Switzerland Reconsiders F-35 Purchase Amid Rising Costs and U.S. Trade Tensions

Switzerland is currently reevaluating its planned procurement of the Lockheed Martin F-35 Joint Strike Fighter due to a significant increase in the projected cost of acquiring the aircraft. The Swiss government had agreed to purchase 36 F-35As under the assumption that it would be a fixed-price deal totaling 6.035 billion Swiss francs ($6.25 billion) but has since been made aware by U.S. officials that this figure is not guaranteed. Rising costs related to raw materials and energy are expected to drive the total significantly higher, with Swiss officials acknowledging that the cost increase could be as steep as 1.3 billion Swiss francs ($1.6 billion).

Talks between Swiss Defense Minister Martin Pfister and U.S. Secretary of Defense Pete Hegseth have not swayed the U.S. from its stance, leaving Switzerland with several critical decisions to make. Among the paths being considered by the Swiss Department of Defense, Civil Protection and Sport (DDPS) is reducing the number of aircraft purchased or negotiating partial compensation for the escalated costs through offset deals with Lockheed Martin. Switzerland remains committed to acquiring the F-35A, noting its technological superiority and alignment with their defense needs, yet recognizes the requirement for a reassessment of its air defense strategy and financial capabilities.

The F-35 program has faced pushback domestically as political opposition within Switzerland intensifies, partly due to President Donald Trump's imposition of a 39% tariff on Swiss exports— the highest tariff imposed by the U.S. on a developed country. This has exacerbated the debate, with some Swiss lawmakers suggesting halting the procurement altogether.

In addition to cost and the current trade frictions with the U.S., Switzerland selected the F-35 after a competitive evaluation, choosing it over alternatives like the Dassault Rafale and the Eurofighter Typhoon. However, the initial decision narrowly passed in a 2020 referendum, with just 50.1% support, highlighting the fragile backing the project has among Swiss citizens and its political establishment.

Switzerland's move to reconsider its F-35 order aligns with a broader skepticism among certain U.S. allies regarding the purchase of the F-35—a skepticism partially fueled by geopolitical tensions and shifts in international trade policies under the Trump administration. Spain, for instance, has decided against purchasing the U.S.-made combat aircraft in favor of European alternatives, citing unpredictability in U.S. policies and actions as a factor in their decision.

The Swiss government, while grappling with these developments, intends to finalize its strategy by November after a detailed review by a working group led by Maj. Gen. Christian Oppliger. This review will reassess the original assumptions made about Switzerland's air defense requirements and address the financial implications of continuing with this procurement as planned.

Despite these hurdles, Switzerland retains an interest in the F-35, citing its advanced capabilities which offer significant defensive advantages. As part of this strategic consideration, the Defense Ministry is weighing options that include adjusting the quantity of jets ordered and exploring financial measures to cover additional costs to ensure that national defense remains robust and sustainable.

In the geopolitical landscape, the F-35 has been a pivotal asset, with its usage widespread among allied nations, facilitating interoperability in defense operations. The difficulties faced by Switzerland in this procurement process are indicative of the broader challenges posed by current U.S. trade policies and the implications for defense dynamics in Europe.

The dialogue between Switzerland and the U.S. regarding the F-35's procurement continues to evolve, with multiple factors at play amid a backdrop of fluctuating alliance priorities and domestic pressures. The outcome of these discussions will likely influence Switzerland's air defense posture and could have ramifications for the broader aerospace defense landscape.