Under President Donald Trump's 'America First' policy, the emphasis was on prioritizing the U.S. economy. This approach led to imposing significantly high tariffs on foreign goods. Ironically, this has taken a toll on the F-35 fighter jet program, considered one of the world's most advanced stealth aircraft. By 2025, several countries chose to cancel or halt their F-35 deals, leading to potential billions in losses for Lockheed Martin and threatening American jobs.
The F-35 Lightning II is among the most advanced stealth fighter jets globally, crafted by Lockheed Martin. It's a key asset in not only the U.S. military but for over 20 other countries as well. Capable of evading enemy radar and attacking from air, land, and sea, its cost is exceedingly high, priced at $80-100 million each. Bulk purchases help reduce these costs, but without international buys, it places financial pressure back on the U.S.
In 2025, Trump increased tariffs on foreign products by 10% to 50%, known as reciprocal tariffs, mirroring those imposed on American goods by other nations. By April 2025, the average tariff hit a 100-year high of 27%. While intended to safeguard American jobs, these tariffs contributed to price hikes as parts for the F-35 are sourced globally, leading to dissatisfaction among allied nations. Many are now opting for European-built fighters like the Rafale, Eurofighter, or Gripen, deepening the export crisis for F-35s.
Source: aajtak
Portugal scrapped a plan to purchase 36 F-35 jets in March 2025, opting for alternatives such as Rafale or Gripen to replace its older F-16 fleet.
India outright rejected the F-35, despite being showcased at Aero India 2025. The 50% tariff had rendered the price exorbitant. Now, India focuses on developing its indigenous technology and manufacturing industry.
Switzerland's contract for 36 jets valued at $9.1 billion is shaky, with tariffs on Swiss goods like watches and chocolates previously spiking to 39% before settling at 15%. Swiss parliamentarians remain dissatisfied, with 42,000 petitioning to cancel the deal.
Spain dissolved its agreement for 45-50 jets, citing defensive funding criticisms and tariff threats from Trump. Spain now explores purchasing the Eurojet or the Future Combat Air System.
Canada reviewed its agreement for 72 jets, having received only 16 so far. Rising costs and dwindling trust in the U.S. partnership are causing concern.
Sweden's Gripen offers to create 10,000 jobs. Overall, over 150 jets lost with 72 more uncertain.
Source: aajtak
In November 2025, Trump approved the sale of F-35s to Saudi Arabia, a new client, but Congressional approval is required. Israel, once the exclusive owner of F-35 jets in the region, is displeased. This move aims to patch up U.S.-Saudi relations, but the deal remains pending.
These deal cancellations have cost the F-35 program over $100 billion. The Pentagon has reduced its 2026 purchases, and the U.S. economy bears the strain, imposing an additional $1,200 tax per household. Allies now favor 'Make in Europe' initiatives. Trump's policies are fraying NATO relations. Lockheed Martin fears job losses as 'America First' inadvertently harms U.S. interests.
Source: aajtak
Scientists and economists warn that such tariffs could drive inflation and initiate trade wars. The future of the F-35 is uncertain. Trump may need to amend his policies. Hope persists that the U.S. and its allies will collaboratively find solutions to strengthen security and trade.
