Top Peruvian Ministers Resign After Interim President Delays $3.5 Billion F-16 Jet Deal

Two senior cabinet ministers in Peru have stepped down following interim President Jose Maria Balcazar's decision to defer a $3.5 billion deal to buy F-16 fighter jets from Lockheed Martin. Defence Minister Carlos Diaz and Foreign Minister Hugo de Zela resigned in protest, citing fundamental disagreements with the postponement.

This move highlights the ongoing political instability in Peru, which has seen nine presidents in a decade, and raises questions about the country's military modernization plans and its diplomatic relations with the United States amid growing regional tensions.

Why the F-16 Deal Became a Flashpoint

The planned acquisition of 24 F-16 fighter jets, valued at $3.5 billion, was approved in 2024 under former President Dina Boluarte. The deal aimed to modernize Peru's aging air force with an initial batch of 12 jets. However, the purchase has been controversial, with critics questioning whether it signals undue alignment with the Trump administration and whether alternative offers from French and Swedish manufacturers were overlooked.

Interim President Balcazar, who took office in February after a series of impeachments, announced last week that the decision would be deferred to the next elected government. He argued that committing such a large financial sum during a transitional period would be poor governance.

Resignations Shake the Cabinet

Defence Minister Carlos Diaz and Foreign Minister Hugo de Zela tendered their resignations on Wednesday, explicitly opposing the postponement. Diaz described the decision as a 'strategic move in national security' with which he fundamentally disagreed.

A strategic decision has been taken in the area of national security with which I have a fundamental disagreement.—Defence Minister Carlos Diaz

Balcazar himself had canceled a signing ceremony for the deal abruptly, signaling the uncertainty surrounding Peru's defense procurement amid political upheaval.

US Pushback and Regional Implications

The United States, represented by Ambassador Bernie Navarro, expressed strong disapproval of the delay. Navarro warned that any bad faith dealings undermining US interests would be met with all available tools to protect regional security and prosperity.

If you deal with the U.S. in bad faith and undermine U.S. interests, rest assured, I, on behalf of President Trump and his administration, will use every available tool to protect and promote the prosperity and security of the United States and our region.—US Ambassador Bernie Navarro

The Trump administration has also been pressuring Peru to distance itself from Chinese investments, particularly in strategic infrastructure like the Pacific port of Chancay, which has raised concerns about sovereignty and security.

Political Instability Clouds Peru’s Future

Peru’s political landscape remains volatile, with a messy presidential race complicated by vote-counting delays and allegations of fraud, though no evidence has been found. The next president, expected to be sworn in July, will inherit the responsibility of deciding on the fighter jet deal and navigating Peru’s complex international relations.

Right-wing candidate Keiko Fujimori is poised for a runoff in June, but the identity of her opponent remains uncertain amid a tight race. The outcome will significantly influence Peru’s defense and foreign policy direction.

Looking Ahead: What’s Next for Peru’s Defense Strategy?

The deferral of the F-16 deal underscores the challenges transitional governments face in making long-term strategic commitments. Peru’s next elected leader will need to balance military modernization with fiscal responsibility and geopolitical considerations, especially amid US-China competition in the region.

Observers will be watching closely how the new administration handles this pivotal decision, which could shape Peru’s defense capabilities and international alliances for years to come.