Canada is reevaluating its C$19-billion ($13.29 billion) contract to purchase 88 F-35 fighter jets from Lockheed Martin due to concerns over its heavy reliance on the United States for national security, Prime Minister Mark Carney revealed on Monday. His comments come just days after he ordered a review of the deal, highlighting growing trade tensions between Canada and the US.
Carney emphasized the need for diversification, stating, “It is clear that our security relationship… is too focused on the United States. We must diversify.” He pointed out that Canada currently allocates about 80% of its defense budget to purchasing American-made weapons.
Despite the review, Canada’s Ministry of Defense confirmed that the contract remains intact, with a legal commitment for the first 16 F-35 aircraft. Carney, however, made it clear that Canada is seriously considering other options. He noted that producing alternative aircraft within Canada could provide substantial economic benefits and that reviewing alternative solutions was in the country’s best interest.
While Carney did not specify potential alternatives, Swedish aerospace company Saab, which had lost out to Lockheed Martin in the original bid, had previously proposed assembling its fighter jets in Canada. The shift could potentially involve significant production opportunities for Canadian firms, although concerns have been raised regarding the economic impact of canceling the deal. Bombardier CEO Eric Martel expressed worry that a cancellation could result in Washington targeting the company’s US contracts.
The trade dispute between the two nations has escalated under President Donald Trump’s administration, with tariffs imposed on Canada and suggestions that the country could be absorbed as the US’s 51st state. This ongoing friction has added to the complexity of defense procurement decisions.
Defense experts also cautioned that Canada’s commitment to the F-35 deal, including the purchase of 16 jets with the option for more, could lead to significant costs. Philippe Lagasse, a procurement specialist at Carleton University, noted that adding more jets to the order would further strain the country’s defense budget.
Canada’s commitment to increasing its defense spending, in line with NATO targets, has already led to a pledge of billions in additional funding for the armed forces. This increased investment, however, will not immediately resolve the strategic challenges posed by its dependence on US military technology.
Lockheed Martin responded by emphasizing the importance of its partnership with Canada but deferred any procurement inquiries to the Canadian government. The US Department of Defense did not respond to requests for comment.