Canada is re-evaluating its multi-billion-dollar contract for 88 Lockheed Martin F-35s due to rising trade tensions and threats from the Trump administration, according to research. Prime Minister Mark Carney confirmed that continuing payments for 'long-lead' items act as a bargaining chip in broader trade negotiations with the US. The Royal Canadian Air Force's F-35 program has exceeded its original budget by $8 billion, The Independent reported. Payments ensure Canada maintains its place in the F-35's global production line, but backing out now would mean losing years of progress if the relationship stabilizes. Given the unpredictability of the American supply chain under Donald Trump's administration, the Canadian government is seriously contemplating reinvesting in domestic aerospace and defense.
Canada is currently exploring a split or 'mixed' fleet strategy, according to research. The Saab JAS 39 Gripen E has risen as a contender for Canada's fighter jet procurement. The Saab Gripen E is praised for its ease of maintenance in the Arctic and lower costs. A revived domestic military industrial aerospace industry for Canada is one of the advantages of the Saab Gripen. Canada would have complete sovereign control over mission software and data with the Saab Gripen, according to research.
The Royal Canadian Air Force's F-35 program has exceeded its original budget by $8 billion, The Independent reported. Canada has moved forward with payments for 14 additional F-35 jets on top of the 16 already committed, according to research. Payments ensure Canada maintains its place in the F-35's global production line. Backing out now would mean losing years of progress if the relationship stabilizes, according to research.
Military leaders argue the Gripen E lacks the stealth and sensor fusion required to survive against modern 'near-peer' threats like Russia or China, according to research. The F-35 Lightning II is far superior to the Saab light fighter in terms of technology and combat performance. The claim that the F-35 or nothing is the only option is increasingly seen as economic protectionism in 2026. The NORAD Alliance's demise would be one of the biggest consequences of Canada's new path. NORAD has long served as the foundation for the claim that Canada ought to use the same military equipment as the US.
Continuing payments for 'long-lead' items act as a bargaining chip in broader trade negotiations with the US.
Saab has offered to build a data center in Montreal if Canada buys Gripen, CBC News reported. Hundreds of YouTube videos promoting Gripen over F-35 for Canada do not appear to be from Saab, according to multiple reports.
Peru's fighter jet decision remains unclear. Defense news site Defensa reported that Peru has chosen to buy US F-16 fighter jets instead of Saab's Gripen. However, two other sources said Peru has postponed its fighter jet decision until summer, keeping Saab's chances alive. Reuters reported that Peru has made an initial payment of 4.3 billion SEK for US fighter jets, suggesting a firm commitment to F-16s, contradicting the postponement narrative.
Thailand signed a contract to buy Gripen jets worth 5.3 billion SEK on August 25, 2024, according to multiple reports. A FOI report from January 2024 warned that technology transfer to China and Russia is a risk with the Thailand Gripen sale. Thailand already uses Gripen jets in joint exercises with China, such as Falcon Strike, according to multiple reports. The US conditioned its F-16 sale to Thailand on not using them in exercises with China, according to multiple reports.
Ukraine has signed a letter of intent for 150 Gripen planes, but financing is unclear, according to multiple reports.
The CF-105 Arrow, the world's most sophisticated interceptor, was originally manufactured in Canada. The 1959 cancellation of the CF-105 Arrow is a notorious national pride issue.