Tensions between Canada and the United States are escalating over a defense deal. Canada is reviewing its plan to purchase 88 F-35 fighter jets, with a decision anticipated by September 22. If Canada cancels the deal, the U.S. has warned of severe repercussions. Canada is considering the Swedish Gripen jets as an alternative, but the U.S. opposes managing two separate fighter fleets. The same jets are being considered for sale by the U.S. to India, though India has yet to respond to this offer.
The F-35 is an advanced stealth fighter jet built by U.S. company Lockheed Martin. This fifth-generation aircraft boasts radar evasion capabilities and is equipped with modern weaponry. In the 2010s, Canada decided to acquire 88 such jets, estimating the cost at 19 billion Canadian dollars (approx. ₹1.1 trillion). This acquisition was meant to replace Canada's aging CF-18 fighter jets.
Related:
Source: aajtak
In March, Canadian Prime Minister Justin Trudeau's Liberal government initiated a review of the deal due to delays and cost overruns in the F-35 program. The U.S. Government Accountability Office (GAO) released a report on September 3, 2025, highlighting extended delays and rising expenses in the F-35 project.
Canada's new Defense Minister, Mark Carney, ordered the review to determine if the deal serves national interests. In August 2025, the Canadian military recommended purchasing the F-35, but the government is still deliberating.
Related:
The U.S. has explicitly stated that Canada could face serious consequences if it cancels the F-35 deal. U.S. Ambassador Pete Hoekstra warned in a May 2025 CTV interview that it could threaten the Canada-U.S. joint NORAD (North American Aerospace Defense Command) alliance.
Source: aajtak
NORAD ensures air defense for both countries, requiring the same aircraft type for seamless operations. Hoekstra noted that operating different fighters in each country would impede interoperability. In August 2025, Hoekstra told a podcast with Jasmine Lane that Canada cannot manage two fighter programs simultaneously.
Hoekstra stated that a choice must be made between the F-35 or another model, but not both. U.S. officials believe canceling the F-35 deal could lead to difficulties for Canada with spare parts, maintenance, and training. It might also affect trade agreements between the two nations.
According to defense industry insiders, the U.S. has cautioned Canada that withdrawing from the deal would weaken defense cooperation.
Related:
Canada is eyeing the Gripen (JAS 39 Gripen) jets made by Sweden's Saab as an alternative option. The Gripen is a lightweight, versatile, and cost-effective fighter jet, presenting a less expensive option than the F-35. Canada believes opting for these could save money and boost the domestic industry. However, the U.S. opposes this as the Gripen is less advanced, potentially disrupting NORAD uniformity. Canada currently operates older F-18 jets, and handling two separate fleets would be costly and complex.
Source: aajtak
Canada's air force urgently needs new fighter jets. The old CF-18s, dating back to the 1980s, are deteriorating. Canada chose the F-35 in 2010, yet concerns rose over costs and delays. In 2022, Canada formally signed the contract for the F-35, but a review is ongoing. This dispute highlights the growing tensions between the two countries, especially in trade and defense sectors.
The F-35 program currently involves 17 countries, training over 1870 pilots and 13,500 maintenance personnel. The F-35 fleet has surpassed 602,000 cumulative flight hours.
Related:
Despite being one of the world's most advanced stealth fighters, the F-35 has faced several crashes. Each mishap incurs a loss of around ₹832 crores. It's part of the U.S.'s most expensive jet program. Last year, an F-35 Lightning-2 crashed upon takeoff from Albuquerque International Airport, New Mexico.
Earlier in South Carolina, a similar fighter jet went missing and later crashed behind a house. Its debris was found 96 km away from South Carolina's Joint Base Charleston, in Williamsburg County.