NATO unveils billions of dollars in arms deals in Turkiye ahead of Trump summit and defence spending talks
US President Donald Trump and Turkish President Tayyip Erdogan hold a bilateral meeting, ahead of their participation in a NATO summit, at the Bestepe Presidential Compound in Ankara, Turkey, July 7, 2026. REUTERS
United States President Donald Trump said on Tuesday he would lift sanctions on Turkiye and decide on a potential sale of F-35 fighter jets to Ankara as he began talks with Turkish President Tayyip Erdogan on the sidelines of a NATO summit.
“We’re going to be taking the sanctions off,” Trump told reporters when asked about measures imposed under the Countering America’s Adversaries Through Sanctions Act (CAATSA).
Washington imposed CAATSA sanctions on Turkiye in 2020 after Ankara acquired Russian S-400 air defence systems. The US also removed Turkiye from the F-35 fighter jet programme, a move Ankara called unjust and illegal.
Trump was expected to support the possible sale of F-35 jets during his visit to Ankara, two sources familiar with the matter said on Tuesday, although legal and congressional hurdles remain unresolved.
“It’s a decision we’re going to make,” Trump said, adding that he and Erdogan would also discuss trade.
NATO unveils billions in arms deals
Meanwhile, NATO leaders began unveiling arms deals worth tens of billions of dollars in Turkiye, signalling that they are responding to US calls for greater defence spending ahead of a summit with President Donald Trump.
At a defence industry forum in Ankara, NATO Secretary General Mark Rutte announced a series of initiatives, with the combined value of deals displayed on a large screen.
Rutte called for a “revolution” in the alliance’s defence industry, warning of growing military spending by Russia, as well as challenges from China, North Korea and Iran.
It is a great pleasure to be at the #NATOsummit Defence Industry Forum
To keep our 1bn people safe in a more dangerous world, we need a transatlantic defence industrial revolution
we need to turn our cash into capabilities
and we need it now pic.twitter.com/GPd0zsKqmc
— Mark Rutte (@SecGenNATO) July 7, 2026
“We don’t have the luxury of time. We need capabilities now to ensure we remain ready. The security situation demands it,” Rutte said. “The hum of machinery must become a roar.”
The announcements were aimed at encouraging Western defence companies to increase production capacity and governments to commit to long-term orders.
European defence industries have faced criticism for fragmentation, bureaucracy and competition between companies and countries, leaving the region heavily dependent on US weapons supplies.
Read More: US president urges Congress to approve $350b defence package
Weak economic growth and the need to preserve welfare spending have also made higher defence budgets politically difficult.
The deals, which had been mostly kept under wraps to make a splash at the summit, included European countries buying surveillance drones from US company Northrop Grumman, and NATO buying planes from Sweden’s Saab.
Saab shares were the biggest gainers in Europe, up more than 5% as investors bet on the company benefitting from European rearmament. Morgan Stanley upgraded the stock.
US defence company Lockheed Martin and Germany’s Rheinmetall signed a draft deal to jointly produce ATACMS missiles in Germany, a move that would mark the first non-US manufacture of the short-range ballistic missile.
Rutte said NATO allies will invest more than $40 billion in the next five years in their anti-drone capabilities.
The announcements follow Trump’s repeated criticism that European allies are not spending enough on defence and rely too heavily on Washington for NATO security guarantees.
Sweden’s Prime Minister Ulf Kristersson and NATO Secretary General Mark Rutte pose for a group photo during the High Level Defence announcements at the NATO Summit Defence Industry Forum, on the sidelines of the NATO leaders’ Summit, in Ankara, Turkiye, July 7, 2026. REUTERS
In a video message on Truth Social ahead of his visit, Trump urged European countries to increase their defence contributions.
Potential shift on F-35 jets for Turkiye
Trump arrived in Ankara to meet Erdogan and join NATO leaders for the alliance’s summit.
Rutte said European allies had made “staggering” increases in defence spending, driven partly by fears over Russia following Moscow’s 2022 invasion of Ukraine and Trump’s pressure.
European NATO members and Canada spent $90 billion more on defence in real terms in 2025 than in 2024, reaching more than $570 billion, according to Rutte.
Also Read: Turkiye eyes F110 fighter jet engines as Trump comes to town
A potential breakthrough in US-Turkiye relations could come if Trump allows Ankara to rejoin the F-35 stealth fighter programme, sources told Reuters.
Iran war revives NATO tensions
Tensions within NATO have deepened since the US attacked Iran in February. Trump has repeatedly criticised alliance members for insufficient support during the conflict and threatened to leave NATO.
European officials said they largely honoured commitments to allow US forces to use their airspace and bases, despite not being consulted about a war that caused economic disruption.
The US has also announced troop withdrawals from Europe and launched a six-month review of its military presence on the continent.
European officials said they were prepared for further criticism from Trump and were uncertain about the outcome of the summit.
NATO members are expected to reaffirm support for Ukraine and pledge €70 billion ($80 billion) in assistance for 2026.
Russia’s missile and drone strikes on the Kyiv region on Monday, which killed at least 28 people, highlighted Ukraine’s shortage of US-made air defence interceptors.