Canada’s unresolved F-35 purchase has moved beyond a military procurement review and into the diplomatic relationship with Washington, with Defence Minister David McGuinty acknowledging that the fighter decision is now being discussed between the two governments as wider Canada-US negotiations continue.
Asked Monday whether the F-35 decision was part of the trade dispute, McGuinty said an “acquisition of that size would normally be a point of debate or dialog between two sovereign nations,” CTV reports.
He stopped short of describing the aircraft as a bargaining chip and said the broader negotiation with the US involved multiple issues and stakeholders.
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The financial exposure is also larger than the $19 billion figure attached to the deal when Canada selected Lockheed Martin for 88 F-35As in 2023. Federal briefing material from February lists the project estimate at $27.7 billion.
The Auditor General found the estimate had risen from $19.0 billion in 2022 to $27.7 billion by 2024, while at least another $5.5 billion would be required for items outside that estimate, including infrastructure and advanced weapons needed for full operational capability.
Canada remains committed to its initial 16 aircraft while reviewing the rest of the planned 88-jet fleet. Prime Minister Mark Carney ordered that review in March 2025 amid concerns about Canada’s dependence on the US defence industry. McGuinty said in April, in a Reuters report, that aircraft from other countries remained under consideration, while Reuters reported that a potential mixed fleet involving Saab’s Gripen had been discussed.
Washington has already publicly escalated its concern. In May, the Pentagon paused participation in the US-Canada Permanent Joint Board on Defense. An anonymous Pentagon official told Reuters that Ottawa’s delays and lack of transparency over the F-35 review were undermining shared defence responsibilities and called for a rapid conclusion.
No decision to reduce the F-35 order has been announced. McGuinty said the government would not be hurried, leaving an increasingly expensive fighter purchase unresolved while it becomes an explicit issue between Canada and its largest defence partner.
