Switzerland sticks with F-35 purchase despite tariff-driven cost uncertainty

[Air Force F-35 Joint Strike Fighter]
Michael Fitzsimmons/iStock Editorial via Getty Images

Switzerland will move ahead with its planned acquisition of Lockheed Martin (NYSE:LMT [https://seekingalpha.com/symbol/LMT]) F-35A Lightning II fighter jets, even as the final price remains uncertain due to U.S. tariffs and other cost pressures, the government announced Wednesday.

The reaffirmation comes just a week after Washington levied some of its steepest global tariff rates on Swiss goods, citing the size of the U.S. trade deficit with Switzerland. Bern noted that the eventual cost of the 36 jets would depend on U.S. inflation, global commodity trends, and potential price hikes stemming from the tariffs.

Switzerland selected the F-35A in 2021 as its next-generation fighter, believing the deal was locked in at about 6 billion Swiss francs ($7.47 billion). However, U.S. officials later clarified that the figure was not fixed. According to the Swiss government, recent talks with Washington indicated it would be impossible to guarantee a set price, with estimates suggesting the total could rise by $650 million to $1.3 billion.

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