Canada reconsiders multi-billion-dollar U.S. fighter purchase as trade tensions with Washington push ally toward European alternative.
Canada is reconsidering plans to purchase 88 American-made F-35 fighter jets as tensions with Washington escalate over trade sanctions and expansionist rhetoric, opening the door for Swedish manufacturer Saab to offer its Gripen fighter as an alternative.
The Canadian government has committed to fielding at least 16 Lockheed Martin F-35As, but the remainder of the Royal Canadian Air Force requirement is now in limbo, according to Saab’s head of marketing for the Gripen program. The uncertainty represents a potential blow to the U.S. defense industry and could reshape Canada’s multi-billion-dollar fighter modernization plans.
Saab has stepped in to offer domestic production of the Gripen in Canada, which it would develop alongside a local partner similar to its arrangement in Brazil. The Swedish airframer insists it is only providing Ottawa with information on procurement options, not actively lobbying for a deal.
However, Mikael Franzen, Saab’s Gripen marketing chief, argues that a mixed fleet could provide advantages over a single-type approach traditionally viewed as more sensible for a force of Canada’s size.
“Gripen has strengths that the F-35 doesn’t have and F-35 that the Gripen doesn’t have,” Franzen said at the Singapore air show on Feb. 4.
While the American jet offers enhanced survivability as a stealth platform, Franzen says the Gripen offers lower operating costs, high availability rates, and an airframe specifically designed for harsh cold weather environments that define much of Canada’s operating conditions.
“Gripen would give combat mass to Canada,” Franzen said. “Canada is an Arctic environment like Sweden, so we know the Gripen would fit really, really well in Canada.”
The Swedish manufacturer is targeting production of 36 new-build Gripen E/F fighters annually, with significant capacity coming from outside its flagship assembly site in Linkoping, Sweden. A Brazilian assembly plant, operated by Embraer in partnership with Saab, is set to deliver its first Gripen in the first quarter of this year — the first supersonic fighter produced in Latin America.
That aircraft will go to the Brazilian air force, the launch customer for Gripen E/F, which is already flying jets built in Sweden. Additional firm orders from Thailand, Colombia, and the Swedish air force give Saab a comfortable runway to pursue other promising opportunities in Portugal, the Philippines, Peru, and Ukraine.
Both the Embraer plant in Brazil and a still-hypothetical Canadian production line would serve export customers, not just fulfill their respective domestic orders, Franzen said.
Saab says it has already begun expanding Gripen production, regardless of what decision is made in Ottawa.
“It’s not like we will start if Canada selects Gripen,” Franzen said.
The Canadian reconsideration comes as the Trump administration has launched trade disputes with key allies. Defense Minister Bill Blair is reviewing the F-35 purchase to see if other options exist, given what officials described as a changing environment.
Without a doubt, the most-watched opportunity for the Gripen is in Canada, where the government’s potential pivot threatens a flagship U.S. defense program already facing production challenges and international scrutiny over costs and operational complexity.
Key Takeaways
- Canada is reconsidering plans to purchase 88 F-35 fighter jets, with only 16 now committed.
- Swedish manufacturer Saab has offered to build Gripen fighters domestically in Canada through a local partnership, similar to its Brazilian assembly arrangement, delivering Latin America’s first supersonic fighter this quarter.
- Saab is expanding Gripen production capacity to 36 aircraft annually to meet growing international demand from countries including Thailand, Colombia, Portugal, Philippines, Peru, and Ukraine.
- The Swedish fighter offers lower operating costs and Arctic-optimized design compared to the F-35’s stealth capabilities, with Saab already investing in production expansion regardless of Canada’s final decision.
