Lockheed Martin(US:LMT) Guan Cha Zhe Wang·2025-08-14 10:38Core Viewpoint - The article discusses the growing frustration among U.S. allies regarding the Trump administration's tariffs and defense spending threats, leading to significant repercussions for U.S. defense contractors, particularly the F-35 fighter jet program [1][5]. Group 1: Impact on Defense Contracts - Spain has abandoned a multi-billion dollar F-35 procurement plan due to disputes over NATO's defense spending targets and U.S. tariffs [1][3]. - Switzerland is facing pressure to cancel its F-35 order, which is valued at approximately $15 billion, due to the impact of U.S. tariffs and rising costs [3][5]. - India is reportedly planning to retaliate against U.S. tariffs by suspending its purchase of American weapons, further threatening U.S. defense sales [1][5]. Group 2: Political and Economic Implications - The actions of Spain and Switzerland reflect a broader reevaluation of defense relationships with the U.S., indicating a significant backlash against U.S. tariff policies [1][3]. - The F-35 program, produced by Lockheed Martin, relies on a global supply chain, and reduced orders could lead to increased costs per aircraft [3][6]. - The article highlights that the Trump administration's tariffs are pushing European nations towards developing their own defense capabilities, potentially undermining U.S. military sales [7]. Group 3: Responses from U.S. Officials - Former Pentagon officials express that U.S. allies feel harmed by the tariffs, which could lead to long-term damage to U.S. defense relationships [1][6]. - Lockheed Martin attempts to downplay the impact of these cancellations, citing ongoing interest from other countries like the UK, Denmark, and Belgium [5][6]. - The White House defends the tariff policy as beneficial for the U.S. military-industrial base, claiming it will generate significant revenue for American companies [5].