Canada Re-Evaluates $13.2 Billion F-35 Deal Amid Tensions with Trump

Canada is reevaluating its $13.2 billion (C$19 billion) agreement to purchase 88 F-35 fighter jets from U.S.-based Lockheed Martin, as tensions with the administration of President Donald Trump intensify. Defence Minister Bill Blair confirmed on Saturday that Ottawa is actively engaging with alternative aircraft manufacturers to reassess its options, signaling a potential shift in its defense procurement strategy. The move follows a finalized deal in June 2023 to replace Canada’s aging CF-18 Hornet fleet, with the first jets slated for delivery in 2026.

Blair, speaking to CBC, acknowledged the F-35 as the Royal Canadian Air Force’s preferred choice but emphasized the need to explore other possibilities. “We’re examining whether all 88 jets need to be F-35s,” he said, hinting at discussions with European firms like Sweden’s Saab, maker of the Gripen, which offers assembly in Canada and greater operational autonomy. This reassessment is driven by strained relations with the U.S., exacerbated by Trump’s recent 25% tariffs on Canadian goods and provocative rhetoric, including threats of economic coercion and annexation.

The decision mirrors Portugal’s recent move to reconsider its own F-35 acquisition, reflecting unease among some NATO allies about dependency on U.S. military hardware amid an unpredictable administration. Canada’s review, ordered by new Prime Minister Mark Carney, also weighs strategic concerns—such as U.S. control over F-35 software and maintenance—against national sovereignty and economic priorities. While Canada has paid for the first 16 jets, terminating the full contract could incur penalties, though costs remain unclear.

This shift underscores a broader trend as allies navigate Trump’s “America First” policies, potentially reshaping NATO’s defense landscape. For Canada, balancing military needs with geopolitical realities remains a delicate task as it charts its next steps.