Pentagon approves massive munitions package to boost continental defense cooperation and military interoperability.
The U.S. government has approved a potential $2.7 billion sale of bombs and guidance systems to Canada, a major win for American defense contractors Boeing and RTX, despite strained relations between Washington and Ottawa.
The Defense Security Cooperation Agency cleared Canada to purchase thousands of munitions, including up to 220 BLU-117 2,000-pound bombs, up to 3,400 BLU-111 500-pound bombs, and 3,100 GBU-39 Small Diameter Bomb Increment I weapons. The package also covers thousands of bomb guidance kits, training weapons, and support equipment.
Boeing and RTX are the primary contractors for the proposed sale, which would bolster the American aerospace and defense manufacturing base while strengthening a key NATO ally’s military capability.
The approval comes at a difficult moment in U.S.-Canada relations. President Donald Trump and his advisors have repeatedly suggested Canada would be better off joining the United States as the 51st state, straining diplomatic ties between the longtime allies.
The DSCA said the proposed sale supports U.S. foreign policy and national security objectives by improving the military capability of a NATO ally that contributes to military, peacekeeping, and humanitarian operations worldwide.
The agency added that the sale will improve Canada’s defense capability to deter aggression, ensure interoperability with U.S. forces, and strengthen Canada’s ability to contribute to shared continental defense. Canada will have no difficulty absorbing the equipment into its armed forces, according to the DSCA.
The arms deal approval follows separate uncertainty over Canada’s fighter jet procurement. In early October, the Canadian government confirmed plans to buy an initial 16 Lockheed Martin F-35A fighters but indicated it was keeping options open for the remaining aircraft.
Original plans called for Ottawa to order 88 F-35As to replace the Royal Canadian Air Force’s aging F/A-18A fighters. Tensions have affected Ottawa’s views on defense procurement, with officials now weighing alternatives beyond the initial batch of jets.

Key Takeaways
- The U.S. Defense Security Cooperation Agency approved a potential $2.7 billion sale of bombs and guidance systems to Canada, with Boeing and RTX as lead contractors.
- The package includes thousands of munitions: 220 2,000-pound bombs, 3,400 500-pound bombs and 3,100 small diameter bombs, plus guidance kits and support equipment.
- The approval comes despite diplomatic friction stemming from Trump administration rhetoric about Canadian annexation.
- Canada recently scaled back F-35 fighter jet purchase plans from 88 to an initial 16 aircraft, keeping remaining orders uncertain.





