Trump's tariff policy is now impacting US arms deals. Switzerland is preparing to withdraw from the F-35 deal, and Thailand from the F-16 deal.
Defence News: The impact of Donald Trump's tariff policy and US foreign strategy is now visible on defense deals as well. Switzerland and Thailand have either considered backing out of deals for American fighter jets or have chosen alternative options. This is not just a decision of two countries, but a sign that small and medium-sized countries around the world are changing their strategies in response to US policies.
Switzerland May Cancel F-35 Deal
Switzerland had made a $9.1 billion deal to buy 36 F-35 fighter jets from the leading US defense company Lockheed Martin. But now this deal is in danger. The reason is the heavy tariff imposed by US President Trump on Swiss products. The Trump administration has imposed taxes of up to about 39% on Swiss watches, coffee capsules, and other products. This has caused deep resentment in the Swiss government and its people.
Due to this resentment, many politicians and citizens are questioning why they should buy such expensive fighter jets from the US when the US is harming their trade. The Swiss Parliament and the media are witnessing heated debates regarding this deal.
Thailand Chooses Swedish Gripen, Will Not Buy American F-16
Thailand has taken a major step by rejecting the deal for American F-16 jets. Instead, it has prioritized the Gripen fighter jets from the Swedish company Saab. Thailand finalized this deal of approximately $600 million after a 10-month review. Notably, this decision came at a time when Thailand had recently used F-16s in a conflict with Cambodia on the border.
The Thai Air Force says that the Gripen is more suited to their security and strategic objectives. In addition, this deal strengthens Thailand's sovereignty because they no longer want to be completely dependent on the United States.
A Crack in Trust
The root cause of the decisions of both Switzerland and Thailand is a crack in trust. US policies, especially during Trump's tenure, are becoming less reliable for allies. Tariffs, military pressure, and diplomatic instability have forced many countries to consider how much they can rely on the US regarding their security and foreign policy.
Trade Loss Due to Tariffs
Trump's tariff policy has affected US trading partners. In the case of Switzerland, it is clear how an economic shock can also affect a defense deal. When heavy taxes are imposed on a country's products, that country may distance itself from the US at the political and defense levels as well.
Gripen: An Affordable and Reliable Option
Sweden's Gripen fighter jet is considered an affordable and technologically b option. It is easy to maintain and is becoming a practical option for small countries. It is much cheaper compared to American jets like the F-35 and F-16. Along with this, Sweden's political neutrality and stability are also a major reason why countries are now attracted to options like the Gripen.
Countries Moving Towards Strategic Independence
Small and medium-sized countries no longer want to depend solely on the US. They want diversity in their defense policy so that they are not under pressure from any one country. Thailand's choice of the Gripen is a step in this direction. Switzerland also wants to maintain its neutrality and therefore is not in favor of making a deal with the US at all costs.
If Switzerland cancels the F-35 deal, it will be a major blow to the US defense industry. This could inspire other countries to take similar steps. Trump's policies may weaken America's image as a reliable defense partner.
