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Trump's tariff war hits US F-35 hard: Spain cancels deal, India declines and Switzerland wavers
A Lockheed Martin F-35 fighter jet performs during the International Aerospace Exhibition ILA on the opening day at Schoenefeld Airport in Berlin, Germany June 5, 2024. REUTERS
The escalating trade war unleashed by US President Donald Trump is beginning to reverberate through Washington's own defence exports, with America's flagship fighter jet programme, the Lockheed Martin F-35 taking a direct hit.
In Europe, Spain has formally shelved plans to buy the US-made stealth fighters, confirming it will now focus on European alternatives, the Eurofighter Typhoon and the Future Combat Air System (FCAS). A defence ministry spokesperson in Madrid said the government had ruled out the F-35 in favour of platforms backed by Airbus, BAE Systems, Leonardo, Dassault Aviation and Indra Sistemas.
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The move follows Trump's sharp criticism of Spanish Prime Minister Pedro Sánchez for refusing to raise long-term defence spending to 5% of GDP, despite plans to meet NATO's 2% target by 2025. Washington had also threatened Madrid with additional tariffs on Spanish goods. With €6.25 billion initially budgeted for new jets and €10.5 billion in extra defence spending earmarked for European industries, the US aircraft had no political or fiscal space left.
Switzerland, meanwhile, is experiencing growing political resistance to its planned purchase of 36 F-35s after Trump imposed punitive 39% tariffs on Swiss exports — the steepest rate among developed nations. The surcharge, which affects luxury watches and Nespresso capsules, has sparked calls in parliament to cancel the order or hold a fresh referendum.
Green lawmaker Balthasar Glättli said, 'A country which throws rocks at us in trade shouldn't get a present,' while Social Democrat co-president Cédric Wermuth urged voters to stop the procurement. Even Liberal allies of Swiss President Karin Keller-Sutter have questioned the deal, citing higher-than-expected costs and the 'American tariff shock.'
The setback in Bern comes at a time when Lockheed Martin is already under pressure, with the Pentagon cutting its own F-35 purchases for 2026 and shifting funds to rival programmes. The 36 jets earmarked for Switzerland would have represented nearly a third of the company's total deliveries in 2024.
India, too, has kept its distance from the F-35 programme. New Delhi has not pursued the American fighter, focusing instead on its indigenous Tejas programme and other procurement options amid friction over Trump's steep tariffs on Indian exports and policy disagreements.
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With key US allies turning to European-made aircraft or reconsidering existing deals, Trump's tariff strategy intended to pressure trading partners is increasingly undermining one of America's most lucrative defence exports. For Lockheed Martin, the turbulence in Washington's trade relationships is now a direct threat to its order books.
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