Rift in US-Canada Relations: F-35 Deal Sparks Tensions, Sweden Eyes Gripen Opportunity

Washington/Ottawa: Tensions between the United States and Canada have escalated over the F-35 stealth fighter jet deal, threatening to strain the historically close relationship between the two North American neighbors. The controversy dates back to former President Donald Trump’s return to the White House, when he controversially referred to Canada as the 51st U.S. state, prompting political upheaval in Ottawa and the resignation of then-Prime Minister Justin Trudeau. Mark Carney succeeded him, but the friction between the countries has only intensified.

F-35 Deal Under Review
Canada signed a deal in January 2023 to purchase 88 F-35 jets from U.S. defense giant Lockheed Martin for CAD 19 billion, intending to replace its aging CF-18 fleet. However, Prime Minister Mark Carney recently announced a review of the deal amid ongoing disagreements with the Trump administration, raising the possibility of cancellation—a move that would deliver a significant blow to the U.S. defense sector. While Canada plans to take delivery of 16 jets already paid for, the fate of the remaining 72 remains uncertain.

U.S. Threatens NORAD Implications
The Trump administration has warned Canada of “serious consequences” for North American Aerospace Defense Command (NORAD) operations if the deal is not honored. U.S. Ambassador to Canada Pete Hoekstra told CBC News that NORAD, which integrates radar, satellite, and fighter aircraft networks for continental defense, could face disruptions, including mandatory U.S. F-35 flights over Canadian airspace to compensate for any shortfall.

Diplomatic Tensions Mount
Relations between the two countries worsened as Carney publicly rebuked Trump at the World Economic Forum in Davos, asserting, “Canada is not alive because of America. Canada is advancing because we are Canadians.” Trump responded with threats of 100% tariffs on Canadian goods and canceled a peace summit invitation, prompting Canada to begin contingency planning for potential U.S. aggression.

Sweden Seeks to Fill the Gap with Gripen Jets
Amid the tensions, Sweden’s defense company SAAB has offered Canada 72 Gripen E/F fighter jets and six GlobalEye surveillance aircraft, promising local production that could create 12,600 jobs. SAAB has partnered with Canadian aerospace manufacturer Bombardier to facilitate licensed production. Canadian officials are reportedly studying the proposal, but a full pivot from the F-35 to the Gripen would mark a bold challenge to U.S. influence.

Royal Canadian Air Force (RCAF) commander Lt. Gen. Jamie Speers-Blanchette cautioned that China and Russia already possess fifth-generation fighter aircraft and missiles capable of rapid, high-intensity engagement, making the F-35 a strategically superior choice. The question remains whether Canada will take the political and military risk to abandon the F-35 deal and embrace Sweden’s Gripen alternative.