Trump Signals Imminent F-35 Decision for Turkey Amid $700M Engine Deal Talks

Key Facts

In a move that could reshape regional defense alliances, Donald Trump has stated he will soon decide on the sale of F-35 fighter jets to Turkey. According to reports, Trump may proceed with the sale despite an existing Congressional ban, as negotiations are reportedly underway for a separate aircraft engine deal valued at $700 million. This potential policy shift comes despite direct concerns raised by Israeli Prime Minister Netanyahu regarding escalating rhetoric from Ankara.

This development is a critical pivot for Lockheed Martin and the broader defense sector, following Turkey's removal from the F-35 program in 2019. Per market data, the $700 million engine deal represents a significant industrial catalyst that could reintegrate Turkish suppliers into the global aerospace chain. Industry analysts cited by Reuters suggest that bypassing a Congressional ban would require substantial political capital, given Turkey's previous purchase of Russian S-400 systems, which originally triggered the sanctions.

Investors should monitor Turkey's Balance of Trade, which reported a 10.4 billion USD deficit on July 3, 2026, as these major defense contracts could impact bilateral economic ties. The upcoming decision on the $700 million engine procurement and any formal response from Congress will be the key catalysts to watch for in the immediate term.