United States defense orders finding approval in Switzerland, as they aim to counteract escalating tariffs
Tension Mounts Between Switzerland and the United States Over Tariffs and F-35 Purchase
As of August 2025, a contentious dispute between Switzerland and the United States continues to unfold, with the imposition of a 39% tariff on most Swiss goods by the US and the ongoing negotiations over the price of F-35A fighter jets.
The Tariff Dispute
The US tariff, the highest levied on any developed country, has significantly strained Swiss-US trade relations. The majority of Swiss citizens oppose any concessions to the US in response to these tariffs, despite the expected economic damage they will cause. Swiss economic growth has slowed markedly ahead of the tariff imposition, with predictions of a "short shallow recession" and pressure on the Swiss central bank to cut interest rates further.
The F-35A Fighter Jet Deal
Initially, Switzerland planned to purchase 36 F-35 jets for CHF 6 billion under a fixed-price agreement with the US. However, talks to maintain this fixed price failed during summer 2025, as the US government insisted on pricing aligned with its negotiated value with Lockheed Martin, leading to increased costs estimated between CHF 650 million and CHF 1.3 billion more than originally planned.
The Swiss government and Defense Minister's efforts to negotiate a lower price have not succeeded. Political opposition in Switzerland has grown against purchasing the F-35s, in part as a reaction to the tariff-related tensions and increased costs.
Impact on Swiss Economy and Businesses
The tariff jeopardizes entire sectors of the export-heavy Swiss economy, including watchmaking, industrial machinery, chocolate, and cheese. Swiss businesses worry that competitors in other wealthy economies will have an advantage due to lower tariffs. No new information about the tariff's impact on Swiss businesses was provided in this paragraph.
Separate Matter: The F-35A Purchase Negotiations
The negotiation over the F-35A purchase is a separate matter from the tariff dispute between Switzerland and the United States. The F-35A combat aircraft was chosen by Switzerland in June 2021 over the Airbus Eurofighter, the F/A-18 Super Hornet by Boeing, and French firm Dassault's Rafale. The issue of the final price of the F-35As is still under negotiation.
The Swiss Government's Stance
The Swiss government is concerned about the 39-percent tariff on imports from Switzerland. Despite this, they are not willing to question the contract for purchasing 36 new Lockheed Martin F-35A fighter jets. The US Defense Security Cooperation Agency wants Switzerland to assume additional costs, but Bern is sticking to the agreed price of over six billion Swiss francs ($7.4 billion).
In summary, the tariff dispute has hardened Swiss public opposition to concessions, negatively impacted the Swiss economy, and complicated Switzerland's defense procurement, causing significant cost increases and political controversy over the F-35 purchase. The negotiation over the F-35A purchase is a separate matter from the tariff dispute between Switzerland and the United States, with the issue of the final price of the F-35As still under negotiation.
*1. The tariff dispute between Switzerland and the United States has led to a strained relationship in the financial sector, as Swiss businesses anticipate economic damage and increased costs due to the levied tariffs, creating a general-news topic of concern.
- The politics surrounding the purchase of F-35A fighter jets have become intertwined with the tariff dispute, as political opposition in Switzerland grows against the potential increased costs and the general-news impact on the Swiss economy and businesses.
