Reference News Network reported on May 10 that according to a report on the website of The Wall Street Journal on May 6, the F-35 fighter jet is a symbol of American military and technological strength, yet it relies on more than 80 components provided by an obscure company headquartered in a quiet suburb of Denmark.

In total, this jet fighter produced by Lockheed Martin has over 1900 suppliers located in approximately a dozen countries, providing various components ranging from tiny chip boards to ejection seats.

The vast supply chain of the F-35 fighter jet indicates that even America's defense industry may face challenges from the trade war initiated by the Trump administration. The U.S. defense industry exports weapons worth tens of billions of dollars, but imports very little.

Tariffs will make many components and raw materials for modern weapons more expensive. Defense companies are currently trying to cope with potential impacts and are lobbying the White House for exemptions like other industries, while the Pentagon may ultimately bear most of the costs.

Raytheon Technologies CEO Christopher Calio said, "For decades, the trade surplus in the aerospace and defense industry has been among the highest in all of American manufacturing, with tariff-free policies playing a crucial role." Raytheon produces sensors and engines for the F-35 fighter jet.

Calio stated at a recent earnings call, "But like many businesses in our industry, our supply chain and customer base are global, and we import raw materials, components, and modules from around the world."

Raytheon expects to suffer an $850 million loss this year due to tariffs, primarily affecting its commercial business segment.

Some members of Congress are calling for tariff exemptions for defense-related activities, especially since many goods are supplied by America's allies.

Kevin Cramer, a member of the U.S. Senate Armed Services Committee and Republican Senator from North Dakota, said, "We need appropriate exemption clauses to recognize these friendships; otherwise, how can the F-35 fighter jet not become more expensive? Clearly, it will."

The cost of the entire F-35 program cycle exceeds $2 trillion, making it the most expensive weapon in the world.

This fighter jet has been a particularly successful export product, selling over 1100 units to 20 countries since its service began in 2015, contributing to America's dominant position in arms trade.

However, the F-35 fighter jet uses components from all over the world. Part of the project funding comes from Britain, Italy, Norway, Netherlands, Australia, Canada, and Denmark, whose enterprises have subsequently won contracts to supply components.

According to British government data, British companies contribute about 15% of the value of each aircraft, with most being manufactured in the UK. BAE Systems produces one body component and pilots' control sticks in the UK. Rolls-Royce provides technology enabling one model of the F-35 to perform vertical takeoffs and landings. Even the ejection seats for this jet are manufactured in the UK.

Australia said its defense industry has secured F-35 fighter jet contracts worth over $3.2 billion, including parts for avionics and propulsion systems.

In Denmark, only TEMA Company has stated that so far it has produced 30,000 components for the project, including gun pods for certain models.

Oliver Wyman Consulting said foreign governments are increasingly seeking greater involvement in the production of the American equipment they purchase.

For example, starting in July, Rheinmetall will produce F-35 fighter jet body components in a factory in Germany. This factory will also produce missiles for the "Patriot" air defense system, with some components provided by a Spanish company.

Tariffs also affect American manufacturers purchasing components and raw materials domestically.

U.S. defense companies are required to use American-made steel, and with tariffs on imported steel, U.S. steel prices have surged significantly this year.

In this uncertainty, General Dynamics CEO Phebe Novakovic simply refused to answer questions related to tariffs during a recent earnings call.

She said, "Given our lack of proper understanding, anything I say on this issue is almost certainly wrong."

F-35 Fighter Jet (AP Photo)

Source: https://www.toutiao.com/article/7502659489858961972/

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