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Canada Could Scrap $13 Billion F-35 Fighter Jet Deal With US

F-35 fighter jets. This image from March 09, 2025 shows F-35 62nd Fighter Squadron flyover prior to the NASCAR Cup Series Shriners Children's 500 at Phoenix Raceway on March 09, 2025 in Avondale, Arizona. ( Jonathan Bachman/Getty Images

Canada is reexamining its purchase of U.S.-built F-35 stealth fighter jets amid growing rancor over the Trump administration's tariffs on its northern neighbor and threats by the U.S. president that it will become the 51st state.

Ottawa is looking at potential alternatives to a $CAN 19 billion ($13.2 billion) purchase of the Lockheed Martin fifth generation jets, defense minister Bill Blair said, according to CBC, hours after being reappointed to the role by new prime minister Mark Carney.

Newsweek has contacted Lockheed Martin and the Pentagon for comment.

Why it matters

CBC said there is growing support among Canadians to kill the F-35 deal struck with the U.S, due to President Donald Trump's rhetoric about making Canada the 51st state and his imposition of 25 percent tariffs on goods with some exceptions, such as energy.

However, reneging on the U.S. aircraft deal threatens to sour ties even further and could undermine the neighbors' security relationship.

What to know

After years of delay, Canada's Liberal government signed a contract with Lockheed Martin in June 2023 to purchase 88 F-35 jets-16 of which Ottawa has already paid for.

The F-35 is a single-seat, single-engine, supersonic stealth strike fighter which has advanced electronic warfare and intelligence, surveillance, and reconnaissance capabilities.

Blair told CBC's Power & Politics that the aircraft had been identified as the platform required by its air force, but also said Canada was "examining other alternatives" and looking at "whether we need all of those fighter jets to be F-35."

Blair comments suggest that the first batch of F-35s might be accepted but the rest of the fleet could consist of European aircraft, such as the Swedish-built Saab Gripen, CBC reported.

However, Flying a mixed fleet of fighter jets is something the air force has been long resisted and would require two different training regimes, separate hangars and infrastructure and a different supply chain-a far costlier prospect.

What people are saying

Canadian defense minister Bill Blair on CBC: "Canada is actively looking at potential alternatives to the U.S.-built F-35 stealth fighter and will hold conversations with rival aircraft makers."

Republicans against Trump on X: "Trump's relentless attacks on our allies have left America weaker and more isolated than ever."

What happens next

Trump's rhetoric may have shaken the confidence of partners, allies, and customers in the U.S. defense sector but Canada terminating the F-35 contract won't be easy, according to the Aviationist.

Having already paid for the first 16 aircraft, if Ottawa backs out of the full contract, financial penalties would likely apply, although it is not clear how much, the publication said. Also, Canada has been investing in the program for decades.

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This story was originally published March 15, 2025 at 12:38 PM.

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