Amid escalating trade tensions with the US, Canada is reassessing its multi-billion dollar order for F-35 fighter jets from Lockheed Martin Corp. LMT.
What Happened: Canada is actively exploring alternative options to the U.S.-manufactured F-35 stealth fighter and plans to engage in discussions with competing aircraft manufacturers, Defence Minister Bill Blair stated late Friday, according to a post by CBC News.
As reported by Breaking Defense, the Canadian military is not canceling but reevaluating its contract with Lockheed Martin for the purchase of F-35 fighter jets, as directed by the new Prime Minister, Mark Carney.
In June 2023, the Liberal government finalized a contract with U.S. defense giant Lockheed Martin to acquire 88 F-35 jets in a deal worth C$19 billion ($14.2 billion). The Canadian government has committed to the purchase of the first 16 aircraft but is actively reconsidering the rest of the order.
“It was the fighter jet identified by our air force as the platform that they required, but we are also examining other alternatives — whether we need all of those fighter jets to be F-35,” the defense minister told CBC News.
This move could potentially open doors for other competitors like Sweden’s Saab, whose Gripen fighter was previously outmatched by the F-35. In response, Rebecca Miller, Lockheed Martin’s director of global media relations stated, “Foreign military sales are government-to-government transactions, so anything further will be best addressed by the U.S. or respective customer governments.”
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Why It Matters: The re-evaluation of the F-35 order comes in the wake of a political tussle with the Trump administration over tariffs and threats of economic annexation. It also raises questions about potential major disruptions in the aircraft’s international supply chain. The development also follows Portugal’s decision to abandon its acquisition of the high-tech warplane.
Furthermore, Canadian retailers have begun boycotting U.S. products, starting with non-essential items such as alcohol, in response to recent tariff disputes and annexation threats by U.S. President Donald Trump. This move is affecting various segments of the agricultural supply chain and is indicative of the shifting consumer behavior in Canada.
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The stock of Lockheed Martin Corp has surged more than 9% over the past month to close at $467.61 on Monday, as per Benzinga Pro
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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