The addition is salty. Already affected by 39% of the customs tasks imposed by the Trump administration, Switzerland is preparing to pay more than expected in its F-35A combat plane. The Federal Council announces to maintain the project to acquire planes produced by the American Lockheed Martin, while studying several options to finance the additional cost.
In the heart of discussions is the purchase price of combat aircraft. Already in June, the Federal Council had expressed itself on the issue, claiming that the United States demanded from Switzerland that it will cover additional costs linked to inflation, that the initial contract provided a fixed price. This disagreement was to be the subject of a “negotiated solution”, in fact, excluding a regulation by legal means.
Finance additional costs
After “intensive discussions”, as described by DDPs, therefore, the United States seems to have done Switzerland Bend, which will have to find solutions to finance the additional costs linked to this acquisition program, in the order of 650 million to 1.3 billion Swiss francs (between 690 million and 1.38 billion euros).
During a press conference, federal minister Martin Pfister spoke of three main roads: a reduction in order, an increase in compensation (“compensatory cases”, often industrial repercussions for the buyer country) or financing through “parliamentary credit.” These options are not exclusive to each other, specify the minister.
A good connoisseur of the file indicates to BFM businesses that the reduction in the number of aircraft would be difficult to imagine, either from an operational or technical point of view. The objective set during the final choice –36 planes, was already considered the minimum necessary to constitute a fleet capable of fulfilling the territory defense missions.
During the DDPS press conference, Martin Pfister did not discuss a number, but is happy to specify that it would be “very little” anyway, in view of the initial forecasts: a 2017 report mentioned several options at 30, 40, 55, even 70 airplanes.
With respect to the financial component, the minister indicates that the objective is to remain “within the limits of the 6 billion Swiss francs” (around 6.4 billion euros), a sum that had been subject to a vote in September 2020, a limited budget (just more than 50%) by the Swiss population.
Customs duties in ambush
However, uncertainty about the total price remains, as indicated by the Ministry in the press release: “It is not yet possible, at present, to determine the exact total cost of the acquisition.” This price “will depend largely on the future development of inflation in the United States, the evolution of raw material prices in global markets and other factors, such as price increases resulting from customs tasks,” said the press release.
Just affected by the taxes of customs tariffs of 39% by the Trump administration, Switzerland has deactivated to conclude a commercial agreement with the United States, without success. In force since August 7, the surcharge has in danger several vital economic sectors for Switzerland in terms of exports, including watchmaking or chocolate.
Minister David Pfister even said he was ready to consider the additional purchase of military equipment if this allowed to release the situation. The general director of Armamento Urs Loher was in “Work Visit” on the production site of Fort Worth F-35 in Texas.
An important contract
Signed in September 2022, the contract provided the purchase of 36 F-35A combat aircraft, with planned deliveries of 2027. Lockheed Martin aircraft must replace the Hornet F/A-18 and especially Tiger F-5 flores This deadline, according to DDPS.
In addition, Switzerland has also chosen to equip himself with five Patriot of American anti-mission defense systems, which would be delivered between 2026 and 2028 to modernize air defense capabilities. But the United States, after making the decision to prioritize deliveries to Ukraine, the Swiss order is currently postponed to a date that has not been specified.
A working group has been launched to examine in depth the recommendations made in 2017 with respect to the protection of the air of Switzerland, in order to evaluate whether the criteria of the time remain the same currently, and possibly consider a reevaluation of the objectives and priorities of purchase. The DDPS will return its conclusions to the Federal Council “at the end of November 2025”.
Source: BFM TV
