Latest news with #F-35A
NDTV
10 hours ago
- Business
- NDTV
Switzerland Wants To Finalise F-35A Deal With US Despite Spiralling Cost
Switzerland vowed Wednesday to continue its attempts to buy F-35A fighter jets from the United States, despite spiralling expense. The US is pushing for Switzerland to bear extra costs for producing the jets of between 650 million and 1.3 billion Swiss francs ($807 million-$1.6 billion) on a contract worth six billion Swiss francs, but the Swiss want to agree on a fixed price. The Swiss Federal Council said "intensive discussions" between the two countries had shown the US was "not prepared to deviate from its position". The council said the final price of the procurement would depend on factors including US inflation, commodity prices and US tariffs. "The Federal Council remains committed to procuring the F-35A," the council said, insisting the jets had "significant technological advantage over other aircraft". The council said it had asked the defence department to review all the available options and report back by November. The government won a referendum in September 2020 by a razor-thin margin that approved the military spending of six billion Swiss francs on a new fleet. The F-35A, used by the US Air Force and several European countries, was chosen in June 2021 over competitors from Airbus, Boeing and Dassault. The first deliveries are due in 2027. Switzerland's long-standing position has been one of well-armed military neutrality, and the country has mandatory conscription for men.
Mint
13 hours ago
- Business
- Mint
Swiss Face Higher Fighter-Jet Cost as US Squeezes Government
Switzerland faces additional costs of as much as 1.3 billion Swiss francs to buy Lockheed Martin Corp. F-35A fighter jets after failing to push through a fixed-price deal, in another setback for the government after the US slapped surprisingly high tariffs on the country. Negotiations between Swiss and US officials, including Defense Minister Martin Pfister and his US counterpart Pete Hegseth, failed to sway the US to consider a fixed price, according to the government. Cost overruns will be somewhere between 650 million and 1.3 billion Swiss francs, the government said. 'The discussions clearly showed that the USA is not prepared to deviate from its position,' the government said in a statement on Wednesday. As a result, the government must now accept a price per production batch that corresponds to the value negotiated between the US government and the manufacturer, the release said. At the same time, the unfavorable outcome won't prompt the government to immediately cancel the order, it said. Instead, the Federal Department of Defence will 'examine various options in depth' by the end of November, including whether 'current air defence requirements still correspond to the principles on which the evaluation of the F-35A was based,' according to the release. The latest tussle between the Swiss and the US government comes after US President Donald Trump slapped the highest tariff in the developed world on Switzerland, a surprise move that only heightened public criticism of the already controversial F-35 purchase. Lawmakers across parties have pushed for canceling the contract outright after the tariff decision. Switzerland had for years taken the stance that the 36 F-35As it ordered would be delivered at a fixed price of 6 billion francs. In June, it acknowledged a disagreement with the US over the price and said it would seek a diplomatic solution. The Swiss Air Force now flies older F-5 and F/A-18 jets that date to the 1970s and 1980s, and is looking to replace all of its combat fleet with advanced aircraft. The F-35A stealth fighters it has ordered, at a cost now set to reach as high as 7.3 billion Swiss francs, would be a major step up in capability, and a dozen friendly European countries also operate them. The jet has been a mainstay of Lockheed Martin's bottom line for years. But criticism over cost overruns has flared this year, and the Pentagon sharply cut its proposed purchase of F-35s for fiscal 2026, while pouring more money into rival companies' programs. The Swiss jets on order represents about a third of the number the company delivered in 2024. This article was generated from an automated news agency feed without modifications to text.
Straits Times
3 days ago
- Business
- Straits Times
Swiss open to new US defence orders to tackle tariffs
Sign up now: Get ST's newsletters delivered to your inbox Switzerland's defence minister Martin Pfister said that military purchases are important for relations with the United States. GENEVA - Switzerland's defence minister Martin Pfister said on Aug 10 that he was 'open' to placing new arms orders with the United States as a way to try to reduce Washington's whopping tariffs. The Swiss government is seeking more talks with the United States after a last-gasp mission to the US capital failed to stop a 39 per cent tariff blow that businesses described as a 'horror scenario'. 'Military purchases are important for relations with the United States,' Mr Pfister told Switzerland's domestic Keystone-ATS news agency. 'However, we must first find a path for discussion with the Americans' to try to move relations forward overall, he said. US President Donald Trump blindsided the Swiss when he announced that the wealthy Alpine nation would be hit by one of the highest tariffs among new duties on imports from dozens of economies that took effect on Aug 7. The tariff jeopardises entire sectors of the export-heavy Swiss economy, notably watchmaking and industrial machinery, but also chocolate and cheese. Swiss businesses worry that competitors in other wealthy economies will have an edge, with the European Union and Japan having negotiated a 15 per cent tariff and Britain securing a rate of 10 per cent. Switzerland has argued that the United States enjoys a significant services trade surplus and that most US industrial goods enter Switzerland tariff-free. Mr Pfister stressed that the government had decided not to call into question Switzerland's current contract to buy 36 new Lockheed Martin F-35A fighter jets. 'The issue of the fixed price remains to be resolved,' he added. Switzerland and the United States are quibbling over the final price of the F-35As bought to replace the ageing Swiss fleet. The US Defence Security Cooperation Agency wants Switzerland to assume additional costs, but Bern says it is sticking to the agreed price of just over six billion Swiss francs (S$9.5 billion). The F-35A combat aircraft – already used by the US Air Force and several European countries – was chosen in June 2021 instead of the Airbus Eurofighter, the F/A-18 Super Hornet by Boeing, and French firm Dassault's Rafale. Switzerland's long-standing position has been one of well-armed military neutrality and the landlocked European country has mandatory conscription for men. AFP
The Sun
3 days ago
- Business
- The Sun
Swiss consider US arms deals to counter high tariff impact
GENEVA: Switzerland's defence minister Martin Pfister has expressed willingness to place new arms orders with the United States as part of efforts to address Washington's steep 39% tariffs. The Swiss government is pursuing further discussions with US officials after failing to prevent the tariffs, which took effect recently and threaten major export sectors. 'Military purchases are important for relations with the United States,' Pfister told Swiss news agency Keystone-ATS. He emphasised the need for constructive dialogue to improve bilateral ties while addressing economic concerns. The tariffs, imposed by the US on Swiss imports, risk harming key industries such as watchmaking, machinery, chocolate, and cheese. Swiss businesses fear losing ground to competitors in the EU, Japan, and Britain, which secured lower tariff rates of 15% and 10% respectively. Switzerland highlights its services trade surplus with the US and tariff-free access for most American industrial goods. Pfister confirmed that Switzerland remains committed to its existing deal to buy 36 F-35A fighter jets from Lockheed Martin. 'The issue of the fixed price remains to be resolved,' he added, referring to ongoing negotiations over the six-billion-franc ($7.4 billion) contract. The US has pushed for additional costs, but Switzerland insists on honouring the agreed price. Selected in 2021 over rival bids from Airbus, Boeing, and Dassault, the F-35A will replace Switzerland's ageing fighter fleet. As a neutral but well-armed nation, Switzerland maintains mandatory military conscription for men. – AFP
Mint
6 days ago
- Business
- Mint
Swiss Government Will Continue Talking to US Despite Tariffs
Switzerland said it will continue to negotiate with the US to lower tariffs from the 39% that kicked in on Thursday. The government 'remains firmly committed to pursuing discussions with the US with the aim of reducing these tariffs as swiftly as possible,' it said in a statement after an emergency meeting on Thursday. 'The Federal Council is maintaining close contact with US authorities and the affected industry sectors.' President Karin Keller-Sutter had previously returned empty-handed from Washington where she sought to sway Donald Trump before the tariff kicked in on Thursday. The two-day emergency trip turned into a humiliation as she was denied a meeting with her counterpart and instead only talked to Secretary of State Marco Rubio, whose department doesn't lead trade negotiations for bilateral deals. The government 'will also shortly engage in detailed discussions on potential relief measures for Swiss businesses and continue to assess the need for further economic policy action,' according to the statement. The 39% surcharge on exports — from Swiss-made luxury watches to Nespresso coffee capsules – is the biggest among developed countries and compares with just 15% on the neighboring European Union. Pharmaceuticals and gold are so far exempt. While pharmaceuticals are excluded from the trade duties — bringing the average rate below 25%, according to Bloomberg Economics — the stakes for Swiss companies, which are big players in the US market, are high and the scale of the duty exceeded all expectations. The cooperative stance clashes with a cross-party push of Swiss politicians on Thursday cancel an order for three dozen F-35A fighter jets from US defense conglomerate Lockheed Martin Corp. in response to the tariffs. The tariff level stunned the Swiss after negotiations that they thought looked promising. But things came to a head late last week when Trump threw out a negotiated framework deal on a call with Keller-Sutter. He was particularly irked by Switzerland's bilateral trade surplus with the US of about $38.5 billion last year. If the 39% rate comes into effect across the board — including on pharmaceuticals — that would put up to 1% of Switzerland's economic output at risk over the medium term, according to Jean Dalbard of Bloomberg Economics. Switzerland is home to pharma giants Novartis AG and Roche Holding AG. This article was generated from an automated news agency feed without modifications to text.
