U.S. defense exports are feeling the heat of the Trump administration’s trade war, as Spain and Switzerland are reevaluating their intentions to purchase F-35s. Spain is leaning toward European substitutes, whereas Swiss opposition is ramping up due to imposed tariffs. The ripple effects of President Donald Trump’s trade tussle are starting to shudder U.S. defense sales, notably impacting the Lockheed Martin F-35, America’s ace fighter jet program.
In a major shift, Spain has formally set aside plans for procuring U.S.-manufactured stealth fighters, signaling a pivot toward European counter-offers like the Eurofighter Typhoon and the Future Combat Air System (FCAS). An official from Spain’s defense ministry clarified that the government is preferring platforms endorsed by Airbus, BAE Systems, Leonardo, Dassault Aviation, and Indra Sistemas.
The transition follows Trump’s pointed censure of Spain’s Prime Minister Pedro Sánchez for his unwillingness to escalate long-term defense expenditures to 5% of GDP, even as Spain plans to hit NATO’s 2% target by 2025. The U.S. also hinted at imposing extra tariffs on Spanish products, causing further friction.
Initially, Spain had slotted €6.25 billion for novel jets and allocated another €10.5 billion for increased defense expenses in favor of European entities. Consequently, the American aircraft found itself without any fiscal or political leeway remaining.
Parallely, Switzerland is witnessing a surge in opposition to its premeditated procurement of 36 F-35s following Trump’s decision to slap a significant 39% tariff on Swiss exports, marking the highest rate among industrialized countries. Swiss Green Party member Balthasar Glättli voiced, ‘A country that antagonizes us in trade shouldn’t reap benefits,’ further enhancing progression resistance.
The call to halt procurement was echoingly urged by Cédric Wermuth, co-president of the Social Democrats. Additionally, even Swiss President Karin Keller-Sutter’s Liberal allies have started raising questions about the transaction, pointing to inflated costs and the surprising ‘American tariff jolt.’
The troubling development in Bern happens concurrently with existing pressures on Lockheed Martin, with the Pentagon pruning its own F-35 purchases slated for 2026 and diverting assets to competing initiatives. The 36 jets Switzerland had in mind constituted nearly one-third of the company’s total anticipated deliveries in 2024.
Not just Europe, but Asia too, is expressing reservations regarding the F-35 program, with India notably keeping its distance. Despite facing intense tariffs on its exports and policy disputes from Washington, New Delhi has refrained from investing in the American fighter, favoring instead its homegrown Tejas program and seeking alternative procurement strategies.
With critical U.S. partners attracted to European-built aircraft or reassessing existing agreements, Trump’s tariff technique designed to coerce trading allies is paradoxically chipping away at one of America’s most profitable defense exports. It’s becoming painfully clear that the turbulence stirred by Washington’s traded blows is manifesting as immediate risk to Lockheed Martin’s sales pipeline.
The post Trump’s Trade War Impacts Lockheed Martin’s F-35 Sales appeared first on Real News Now.
About Author
