A financial dispute has surfaced between Switzerland and the United States concerning the cost of acquiring 36 Lockheed Martin F-35A fighter jets. Switzerland had agreed to a fixed price of slightly more than six billion Swiss francs (approximately $7.5 billion), but the U.S. Defense Security Cooperation Agency (DSCA) is requesting Switzerland cover added expenses stemming from inflation, energy, and raw material price increases in the post-pandemic period.
The DSCA argued earlier this year that the “fixed price” may have been a misunderstanding, although no definitive figure was presented. Switzerland, however, has reaffirmed that the contract is legally binding and had even been publicly supported by the U.S. embassy. If the DSCA’s terms were accepted, the resulting additional costs could range between $650 million and $1.3 billion—figures driven by tariff implications, inflationary pressures, and broader geopolitical instability.
