Canada is reconsidering 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. The country plans to buy 88 new fighter jets to replace its aging CF-18 Hornets, and the Saab JAS 39 Gripen E has risen as a contender for Canada's fighter jet procurement. Prime Minister Mark Carney confirmed that continuing payments for 'long-lead' items act as a bargaining chip in broader trade negotiations with the US, according to research. Canada has recently moved forward with payments for 14 additional jets on top of the 16 already committed to 'keep options open', research indicates. These payments ensure Canada maintains its place in the F-35 Lightning II's long global production line, but backing out now would mean losing years of progress if the relationship stabilizes, according to research. To date, the Royal Canadian Air Force's F-35 program has exceeded its original budget by $8 billion, The Independent reported. Canada is currently exploring a split or 'mixed' fleet strategy, research shows. The NORAD Alliance's demise would be one of the biggest consequences of Canada's new path, according to research. NORAD has long served as the foundation for the claim that Canada ought to use the same military equipment and platforms as the United States. The claim that the F-35 or nothing is the only option is increasingly seen as economic protectionism in 2026, research indicates. The Saab Gripen E is praised for its ease of maintenance in the Arctic and lower costs, according to research. However, military leaders argue the Gripen E lacks the stealth and sensor fusion required to survive against modern 'near-peer' threats like Russia or China, research shows. The F-35 Lightning II is far superior to the Saab light fighter in terms of technology and combat performance, according to research. The RCAF's future F-35 fleet is at risk due to the widening gap between the world's closest allies, exacerbated by President Donald Trump, research indicates. A revived domestic military industrial aerospace industry for Canada is one of the advantages of the Saab Gripen E, according to research. 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, research shows. 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, according to research. Canada would have complete sovereign control over mission software and data thanks to the Saab, research indicates. Saab has offered to build a data center in Montreal if Canada buys Gripen, CBC News reported. Saab's CEO has also opened for a new fighter jet alliance in Europe, according to major media reports.
In Peru, the status of Saab's Gripen deal remains uncertain. Defense news site Defensa reported that Saab lost the Gripen deal in Peru as Peru buys US F-16s. However, major media reports indicate that Peru has postponed its fighter jet selection to summer, keeping Saab's chances alive. Reuters reported that Peru has made an initial payment of 4.3 billion SEK for US fighter jets, but if the decision is postponed, no payment may have been made yet. The final status of Peru's fighter jet selection remains unclear.
Continuing payments for 'long-lead' items act as a bargaining chip in broader trade negotiations with the US.
Thailand signed a contract for Gripen jets worth 5.3 billion SEK, with deliveries until 2030, according to major media reports. However, the FOI warned in January 2024 that Swedish technology could leak to China and Russia via Thailand, according to a FOI report. Kalla fakta reported that Thailand uses Gripen in joint exercises with China, allowing China to test against Gripen. How the Thailand-Gripen deal will proceed given these security concerns is unknown.
Ukraine signed a letter of intent for 150 Gripen planes, but financing is unclear, according to major media reports from nine sources. The financing status of this letter of intent remains uncertain.
Hundreds of YouTube videos promote Gripen over F-35 for Canada, but they are not linked to Saab, according to SVT Verifierar. Whether Saab is actively involved in this campaign is unknown.