Peru's defense minister Carlos Diaz and the foreign affairs minister resigned from their posts on Wednesday. The resignations followed interim President Jose Maria Balcázar's decision to stall and defer a $3.5 billion purchase of U.S. F-16 fighter jets to a new administration taking office later this year.
The decision sparked speculation over the status of the multi-billion-dollar deal. In response, the Trump administration warned against Peru pulling out of the agreement, stating that such a move would reflect bad faith negotiations.
Following the resignation of the two key cabinet members and heavy pressure from the United States, the Peruvian government reversed its course. After several days of uncertainty, the government finalized a contract to purchase 12 F-16 Block 70 fighter jets from Lockheed Martin.