Trump says he will lift Turkey sanctions, decide on selling F-35s

• Turkey has been under U.S. sanctions since 2020 for acquiring Russian S-400 missile defense systems, which resulted in its expulsion from the F-35 fighter jet program
• Trump stated he will remove the CAATSA sanctions and make a decision on potential F-35 sales to Turkey, though legal and congressional hurdles remain unresolved
• The discussions between Trump and Erdogan at the NATO summit will also cover trade issues between the two nations

Summary: Trump Announces Lifting of Turkey Sanctions, Considers F-35 Sales

U.S. President Donald Trump announced plans to lift sanctions on Turkey and consider selling F-35 fighter jets to Ankara during a July 7, 2026 meeting with Turkish President Recep Tayyip Erdogan at the NATO summit in Ankara.

Key Developments:

Trump confirmed the U.S. will remove sanctions imposed under the Countering America's Adversaries Through Sanctions Act (CAATSA). These sanctions were implemented in 2020 after Turkey's acquisition of Russian S-400 air defense systems—a move that also resulted in Turkey's removal from the F-35 program.

The President stated he will make a decision on potential F-35 sales to Turkey, though sources indicate legal and congressional obstacles remain unresolved. Turkey has previously called its exclusion from the F-35 program "unjust and illegal."

Additional Topics:

Trump indicated he and Erdogan would also discuss trade relations during the visit.

Market Implications:

The sanctions removal and potential arms sales represent a significant shift in U.S.-Turkey defense relations. For defense contractors, particularly Lockheed Martin (F-35 manufacturer), Turkey's potential re-entry into the program could represent substantial revenue opportunities. The development may also impact regional defense dynamics and NATO cooperation.

The decision signals improved diplomatic relations between the two NATO allies after years of tension over Turkey's Russian weapons procurement. However, the actual implementation will depend on congressional approval and resolution of legal hurdles, introducing uncertainty for investors monitoring defense sector developments.