Swiss officials have announced that negotiations with the US have failed to resolve a pricing dispute over an order for F-35 fighter jets, potentially leading to a reassessment of the planned purchase.
Fixed Price Abandoned:
Switzerland states that its order of 36 F-35A aircraft from Lockheed Martin should have a fixed price of 6 billion Swiss francs (over $7.4 billion). However, the Swiss government announced that a fixed price has been „abandoned” despite „intensive discussions” with US officials, resulting in potential inflationary and tariff pressures that could increase the cost by 650 million to 1.3 billion Swiss francs.
US Unwilling to Budge:
„The discussions clearly showed that the USA is not prepared to deviate from its position. The result is that Switzerland must accept that the price per production batch corresponds to the value negotiated between the US government and Lockheed Martin and that it is not possible to assert a fixed price,” the Swiss government stated in a press release.
Commitment Remains, but Review Ordered:
Despite the dispute, Switzerland „remains committed to procuring the F-35A,” citing its „significant technological advantage” and widespread use in Europe. However, the Swiss defense department has been directed to „examine whether current air defense requirements still correspond to the principles on which the evaluation of the F-35A was based” and „submit a proposal regarding the next steps” by the end of November.
Fewer Jets Possible:
Defense Minister Martin Pfister suggested that Switzerland may end up buying fewer F-35s, while acknowledging the aircraft’s superior capabilities compared to other options.
Lockheed Martin’s Response:
Lockheed Martin stated that „questions about F-35 cost, schedule and procurement are best addressed by the armasuisse and U.S. government,” as foreign military sales are government-to-government transactions.
Tariff Tensions Add Complexity:
The F-35 pricing dispute coincides with a recent 39 percent tariff rate imposed by the Trump administration on Switzerland, prompting some Swiss lawmakers to call for the cancellation of the F-35 order.
Mixed Fortunes for F-35:
Uncertainty caused by the Trump administration, coupled with increased defense spending in Europe, has created a mixed market for the F-35. While some potential customers have ruled out purchasing the aircraft, others have expressed interest in increasing their fleet size.
Delivery Timeline:
Switzerland’s first F-35 was initially expected to be delivered in 2027, with deliveries continuing until 2030. The ongoing pricing dispute could affect this timeline.
