Stock Markets July 7, 2026 09:27 AM

Trump Says He Will Remove Turkey Sanctions, Will Decide on Possible F-35 Sale

President signals rollback of CAATSA measures and vows a decision on fighter jet sales during talks with Erdogan at NATO summit

By Caleb Monroe
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At the start of a bilateral meeting in Ankara during a NATO summit, U.S. President Donald Trump told reporters he intends to lift sanctions imposed on Turkey and will make a decision on whether to approve a potential sale of F-35 fighter jets. The sanctions stem from Turkey's 2020 purchase of Russian S-400 air defence systems and have previously led to Ankara's removal from the F-35 programme. Legal and congressional issues remain unresolved.

Trump Says He Will Remove Turkey Sanctions, Will Decide on Possible F-35 Sale
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Key Points

  • President Trump said he will lift sanctions imposed on Turkey under CAATSA and will decide on a possible sale of F-35 jets during talks with President Erdogan at a NATO summit - impacts defence and aerospace sectors.
  • The 2020 CAATSA sanctions followed Turkey's acquisition of Russian S-400 air defence systems and led to Ankara's removal from the F-35 programme - this affects defense procurement and contractor relationships.
  • Legal and congressional hurdles tied to sanctions and weapons sales remain unresolved, creating uncertainty for markets and companies linked to defence contracts.

During the opening moments of a scheduled meeting in Ankara on July 7, at a NATO summit, U.S. President Donald Trump said he will remove sanctions on Turkey and decide on a potential sale of F-35 fighter jets to Ankara.

When asked about the measures enacted under the Countering America’s Adversaries Through Sanctions Act (CAATSA), Trump told reporters: "We’re going to be taking the sanctions off." In 2020, Washington applied CAATSA sanctions on Turkey in response to Ankara's acquisition of Russian S-400 air defence systems. Those measures coincided with Turkey's removal from the F-35 programme, a step Turkey described as unjust and illegal.

Trump said a determination on whether to proceed with a sale of F-35s will be forthcoming. "It’s a decision we’re going to make," he told reporters. Two sources familiar with the matter had indicated that Trump was expected to back the potential F-35 sale during the visit to Ankara, even though legal and congressional obstacles have not yet been fully resolved. The president also said he and Turkish President Tayyip Erdogan would discuss trade during their talks.

The statements during the bilateral encounter highlight an ongoing set of policy decisions linking sanctions, defence procurement, and diplomatic engagement. Which actions Trump will ultimately take - and the timing of those actions - remain to be determined as the administration and lawmakers contend with the legal and legislative framework surrounding sanctions and arms sales.

For market participants and stakeholders in the defence and aerospace sectors, any movement on sanctions or an F-35 sale would be observed closely. The announcement that a decision is forthcoming signals potential shifts in the bilateral relationship, but the existence of unresolved legal and congressional hurdles means concrete outcomes are not guaranteed at this time.


Contextual notes

  • Sanctions referenced were imposed under CAATSA in 2020 after Turkey's purchase of Russian S-400 systems.
  • Ankara was removed from the F-35 programme following the S-400 acquisition; Turkish officials characterized that removal as unjust and illegal.
  • Legal and congressional barriers related to sanctions and arms sales remain outstanding.

Risks

  • Legal and congressional obstacles have not been fully resolved - this creates uncertainty for the defence and aerospace sectors and for companies potentially involved in an F-35 sale.
  • Statements of intent to lift sanctions and decide on sales do not guarantee immediate policy change - geopolitical and legislative processes may delay or alter outcomes, affecting market expectations in defence-related stocks.

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