United States defense procurements meet with Swiss approval as a countermeasure against import taxes
Switzerland is grappling with a significant dispute over the pricing of F-35A fighter jets, with the US government refusing to honor a fixed-price deal of approximately CHF 6 billion ($7.47 billion) for 36 jets. The additional costs, estimated between CHF 650 million and CHF 1.3 billion ($808 million to $1.6 billion), have caused concern among Swiss businesses and the government alike.
The tariff announced by US President Donald Trump on Swiss imports stands at 39%, affecting various sectors of the Swiss economy, including watchmaking, industrial machinery, chocolate, and cheese. This tariff, combined with the increased costs of the F-35As, has strained bilateral relations and fueled domestic opposition within Switzerland against the F-35 procurement.
The Swiss government, however, remains committed to acquiring the F-35 jets, emphasizing the strategic importance of maintaining a fifth-generation fighter capability. The F-35A combat aircraft was chosen by Switzerland in June 2021 over the Airbus Eurofighter, the F/A-18 Super Hornet by Boeing, and French firm Dassault's Rafale.
Despite months of intensive talks, including discussions between Switzerland's Defence Minister Martin Pfister and his US counterpart Pete Hegseth, the US has maintained its position that the price must align with the production batch value negotiated between the US government and Lockheed Martin, the manufacturer. The Swiss Federal Council has acknowledged that the fixed price guarantee is no longer valid and has instructed its Defence Ministry to explore various options, including potentially reducing the number of aircraft purchased. However, halting the procurement altogether is not currently considered an option by the Swiss government.
The Swiss government's stance on the F-35A price dispute does not affect their decision to buy the jets. The US enjoys a significant services trade surplus with Switzerland, and the Swiss government believes that military purchases are important for relations with the United States. Most US industrial goods enter Switzerland tariff-free.
The issue at hand is the final price of the F-35As, with the US Defense Security Cooperation Agency wanting Switzerland to assume additional costs. The Swiss government is seeking a path for discussion with the Americans to move relations forward overall. As of August 2025, a decision or updated plan is expected after a re-analysis report due by November 2025.
In summary, Switzerland must pay significantly more than the original CHF 6 billion fixed-price estimate for 36 F-35As, with additional costs estimated up to CHF 1.3 billion. The US government refuses to renegotiate the price. Switzerland is reassessing procurement options, including reducing fleet size, but is not halting the purchase. Political and trade tensions, including US tariffs on Swiss products, add a difficult dimension to the dispute. Domestic opposition in Switzerland is active but the government remains committed to the purchase.
The F-35A price dispute between Switzerland and the US has created tension in their bilateral relations, affecting not only the finance sector but also other businesses in Switzerland, as the increased costs and tariffs threaten various Swiss industries such as watchmaking, industrial machinery, chocolate, and cheese. The Swiss government, despite domestic opposition, remains committed to acquiring the F-35 jets, recognizing the strategic importance of having a fifth-generation fighter capability and the role military purchases play in maintaining strong business relations with the US.
