Trump’s ‘America First’ Policy Delivers Heavy Blow to F-35, Export Crisis Deepens
F-35 Crisis: The high tariffs imposed under U.S. President Donald Trump’s ‘America First’ policy have pushed the world’s most expensive stealth fighter jet, the F-35, into a severe export crisis, highlighting the F-35 crisis. Lockheed Martin has already lost over 150 potential sales, while 72 other deals remain uncertain. In 2025, allied countries such as Portugal and Spain canceled agreements, while deals with Canada and Switzerland have stalled. The Pentagon has also cut F-35 purchases for 2026 by nearly half, raising questions about U.S. Air Force plans. These developments are impacting not only Lockheed’s bottom line but also the U.S. defense industry and the global military balance.
The Trump administration imposed tariffs ranging from 10% to 50% this year, particularly on critical parts like steel and aluminum, affecting the F-35’s global supply chain. The per-jet cost, previously $80–100 million, has further increased due to dependence on imported components. The F-35 program, estimated at a total cost of $2 trillion, was already facing upgrade delays, maintenance challenges, and engine issues. With the impact of tariffs, Lockheed now faces risks on orders exceeding $100 billion, potentially threatening U.S. jobs and imposing an additional $2,000 tax burden on each American household.
Hit Countries Turn to European Alternatives
Portugal Reverses Course: In March 2025, Portugal scrapped its plan to acquire 36 F-35 jets. Uncertainty over NATO commitments and U.S. policies compelled Defense Minister Nuno Melo to shift focus. The country is now considering Rafale or Swedish Gripen jets, amid concerns over potential ‘kill switch’ software in the F-35.
Spain Backs Out: In August 2025, Spain canceled an order for 50 jets. Prime Minister Pedro Sánchez opted for Eurofighter Typhoon or the Future Combat Air System (FCAS) to avoid tariffs and manage NATO spending pressures. The €6.25 billion budget was redirected to European companies like Airbus and Dassault.
India Declines: India completely rejected the F-35. With 50% tariffs and a focus on ‘Atmanirbhar Bharat,’ New Delhi turned to Russia’s Su-57, demanding domestic integration and co-production options unavailable in the F-35 program.
Switzerland Faces Dilemma: A $9.1 billion contract for 36 jets saw costs rise by CHF 650 million to 1.3 billion due to a 39% tariff. The government is reviewing options to reduce numbers or consider European alternatives, though 2027 delivery plans remain intact.
Canada Audits Deal: Canada conducted an audit on 88 jets (72 pending). While tariffs, sovereignty concerns, and the cheaper Gripen option are influencing factors, the F-35 scored 95% in performance evaluations.
Economic Storm and Lockheed Challenges
Trump’s tariffs have turned the F-35 program into a financial burden for the U.S. economy. Lockheed Martin had targeted 200 F-35 sales in 2025, but cancellations have deepened the crisis. The Pentagon’s 2026 budget now approves only 24 F-35A jets (down from 44–48), costing $4 billion. These cuts hurt economies of scale and further raise program costs. The F-35 was already grappling with TR-3 upgrade delays and high maintenance expenses.
Uncertainty Over Saudi Deal
Trump approved a potential sale of 48 F-35s to Saudi Arabia, but Congressional review and Israeli opposition have delayed final approval. As of November 2025, the deal has not been finalized. The White House fact sheet describes it as strengthening Middle East deterrence, while Saudi Arabia pledged $1 trillion in investment. Israeli intelligence chiefs have flagged potential risks to US-Israel relations.
Europe Gains, U.S. Falls Behind?
European jets like Rafale, Gripen, and Eurofighter are rapidly gaining popularity, highlighting the growing F-35 crisis. If Trump’s policy persists, the F-35 may never regain its previous dominance. U.S. influence in the global defense market is weakening, while Europe moves toward strategic autonomy. Moves like the India-Russia partnership could shift the military balance. Overall, the ‘America First’ approach now appears to be harming U.S. interests.
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