Switzerland Protests F-35 Price Increase by U.S.

The Swiss government has officially initiated diplomatic negotiations with the United States after Washington indicated a potential price increase for the F-35A fighter jets, a move that could jeopardize the $6.7 billion procurement agreement signed in 2021.

In a public statement, the Bern administration confirmed that the U.S. Joint Program Office (JPO), which oversees the F-35 program, signaled the revised cost figures—despite what Switzerland says was a clearly defined fixed-price agreement. Swiss defense authorities are now exploring legal and diplomatic options, including a possible cancellation of the deal.

Urs Loher, head of the Swiss defense procurement agency Armasuisse, expressed firm opposition. “A contract is a contract,” he was quoted as saying by media reports. “Despite the clearly stated fixed price for the procurement of F-35A fighter jets, we suddenly faced a different reality.”

The deal covers 36 Lockheed Martin F-35A Lightning II aircraft. But now, due to increased raw material and energy costs, combined with high U.S. inflation, the final bill could climb by an estimated $650 million to $1.3 billion.

In February, the U.S. Defense Security Cooperation Agency (DSCA) told Swiss officials that the fixed-price understanding was a “misunderstanding.” This revelation has triggered backlash in Switzerland, where the F-35 deal has already faced criticism on neutrality grounds and public opposition over costs.

Swiss Defense Minister Martin Pfister confirmed that talks are ongoing. “We believe that we will reach a solution with our U.S. counterparts,” he said. “Because they also have an interest in being perceived as a reliable contracting partner.”

Pfister acknowledged that Switzerland may cancel the agreement if a resolution is not reached. However, he also warned of potential consequences. “Since the current F/A-18 fighter jets will reach their end of service life by 2032, the security of Swiss airspace and the population cannot be guaranteed in the event of a cancellation of the order,” he said.

The original selection of the F-35A over other contenders—Boeing's F/A-18 Super Hornet, France’s Rafale, and the Eurofighter Typhoon—was based on technical, operational, and financial assessments. However, opponents have called the purchase excessive, labeling the aircraft a “luxurious Ferrari” for a small, neutral nation.

Despite the ongoing controversy, Swiss authorities have not officially backed away from the F-35A choice, though they emphasize that the current contract provides no legal remedy for the sudden cost shift.