Switzerland faces higher costs in F-35 fighter jet deal with US

Switzerland will have to pay significantly more than planned for a fleet of US-made F-35 fighter jets after failing to secure a fixed-price agreement with Washington, DC.

Talks over the CHF6 billion ($7.47 billion) deal for 36 aircraft broke down over the summer, with the US refusing to depart from its position, the Swiss government announced on Wednesday.

According to the Federal Council, “intensive talks with high-ranking representatives of the White House” proved unsuccessful.

According to reports by SWI, a Swiss multilingual international news and information company based in Bern, Defense Minister Martin Pfister was also unable to sway his US counterpart, Pete Hegseth, during a phone call.

The government now estimates that additional costs could range from CHF650 million to CHF1.3 billion ($808 million to $1.6 billion). “As a result of the talks, Switzerland must accept that the price per production batch corresponds to the value negotiated between the US government and Lockheed Martin,” the Federal Council said in a statement.

It added that the final cost is uncertain, depending on factors such as US inflation, global commodity prices, and potential tariff increases.

While the Federal Council has instructed the defense ministry to re-analyze the procurement and examine “various options” by the end of November, it stressed that halting the purchase was not on the table.

“The government reaffirms that it remains committed to the procurement of the US F-35 jets,” the statement concluded.