Canada Seeks Alternatives to U.S. Fighter Jet Deal, PM Carney Highlights Over-Reliance

The Canadian government is exploring alternatives to its fighter jet procurement deal with the United States. Prime Minister Mark Carney stated that this move is necessary as the country has become overly dependent on the U.S. for defense.

"Our security relationship has been too focused on the United States. We need to diversify," Carney told reporters during his visit to London on Monday (March 17, 2025), as quoted by Reuters.

He also pointed out that approximately 80% of Canada’s defense budget is spent on purchasing U.S.-made weaponry.

"Considering the need for value for money and the possibility of substantial domestic aircraft production in Canada, it is wise and in Canada’s best interest to review these options," he added.

Carney’s remarks came just days after he ordered a review of a US$13.29 billion contract for 88 F-35 fighter jets from Lockheed Martin. The decision was made amid an ongoing trade dispute between Canada and the U.S.

F-35 Contract Still in Place, Canada Explores New Options

Despite this, Canada’s Ministry of Defense confirmed that the contract remains in effect and that Ottawa has legally committed funds for the first 16 F-35 jets. However, Carney reaffirmed Canada’s commitment to seriously considering alternative suppliers.

Although he did not mention specific companies, Sweden’s Saab, which previously lost the fighter jet contract to Lockheed Martin, has pledged to assemble its aircraft in Canada if selected.

Meanwhile, Canadian aerospace firms are also facing uncertainties. Bombardier CEO Eric Martel expressed concerns that Washington might target the company’s contracts in the U.S. if Canada cancels the deal with Lockheed Martin.

Adding to the tensions, U.S. President Donald Trump has imposed tariffs on Canada and even suggested incorporating the country as the 51st state.

According to Carleton University professor Philippe Lagasse, purchasing 16 F-35 jets and later incorporating other aircraft models could lead to significantly higher costs.

Canada has faced continued pressure from successive U.S. administrations to boost its defense budget. Last year, the Canadian government pledged billions in additional military spending, aiming to bring defense expenditures closer to NATO’s target by 2030.

In a statement, Lockheed Martin affirmed its strong relationship with Canada and referred all procurement-related inquiries to the government.