Rift Between U.S. and Canada Deepens Over F-35 Deal: Will Mark Carney Dare to Buy Gripen Jets?

Washington/Ottawa: Tensions between the United States and Canada are escalating over Canada’s purchase of F-35 stealth fighter jets, raising questions about the future of North American defense cooperation. The friction traces back to former President Donald Trump’s return to the White House, which strained bilateral ties.

Canada had signed a C$19 billion deal in January 2023 with Lockheed Martin to acquire 88 F-35 stealth jets, aiming to replace its aging CF-18 fleet. However, following disagreements with the Trump administration, Canadian Prime Minister Mark Carney announced a review of the deal. While Canada plans to take delivery of the 16 jets already paid for, the remaining 72 aircraft are now in question, posing a significant challenge to U.S. defense planners.

Threats to NORAD and Continental Defense

U.S. President Trump has warned of “serious consequences” if Canada cancels the F-35 deal, highlighting potential impacts on NORAD (North American Aerospace Defense Command)—the integrated network responsible for continental aerospace warning, control, and defense. U.S. Ambassador Pete Hoekstra told CBC News that if Canada does not procure the F-35s, adjustments to NORAD operations, including frequent U.S. F-35 flights in Canadian airspace, will be necessary. Such threats could compromise Canada’s security infrastructure.

The Political Backdrop

Relations between the two nations soured sharply after Trump referred to Canada as the “51st state of the U.S.” upon taking office, forcing then-Prime Minister Justin Trudeau to step down and bringing Mark Carney to power. Canada now faces concerns that U.S. restrictions could limit access to spare parts and software for the F-35, further complicating defense planning. Disputes over Greenland and Canada’s alignment with NATO and European partners have further aggravated tensions.

At the World Economic Forum in Davos, Carney struck back at Trump’s provocative statements, asserting, “Canada does not exist because of the United States. Canada advances because we are Canadians.” In retaliation, Trump canceled Canada’s invitation to the Gaza Peace Board and threatened 100% tariffs on Canadian goods. For the first time, Canada has begun preparations to defend itself against potential U.S. pressure.

Gripen Jets: A Swedish Alternative?

Sweden is now positioning itself to capitalize on the U.S.-Canada dispute. Swedish defense company SAAB has offered Canada 72 Gripen E/F fighter jets and 6 GlobalEye surveillance aircraft, with the option to produce the jets in Canada—creating approximately 12,600 new jobs. SAAB CEO Michael Johansson announced in November 2025 that the company is partnering with Canadian aerospace manufacturer Bombardier to enable licensed production of the Gripen jets.

Canadian officials are currently studying SAAB’s proposal, but the critical question remains: will Canada risk further tension with the United States and shift away from the F-35 to adopt Swedish Gripen jets? Some in the Royal Canadian Air Force (RCAF) still support the F-35, citing its superior capability against China and Russia’s fifth-generation fighters and missiles.

As Canada weighs the F-35 versus Gripen decision, the outcome could redefine North American defense dynamics and signal a bold move in the global fighter jet market.