Canada’s Defence Strategy in the Shadow of U.S. Threats: A Shift to Gripen Fighter Jets

Marcus Wong, Economy & Markets Analyst (Toronto)
5 Min Read
⏱️ 4 min read

In light of escalating tensions with the United States under President Donald Trump’s administration, Canada is reassessing its military procurement strategy. A call has emerged for Ottawa to reconsider its ongoing plan to purchase F-35 fighter jets from the U.S., advocating instead for a substantial order of Gripen jets from Sweden’s Saab, which promises to bolster Canadian industry through local assembly and subcontracting.

A New Era of Economic and Sovereignty Challenges

For the first time in decades, Canada finds itself facing a neighbour that poses both economic and sovereignty threats. The U.S. has introduced barriers to Canadian exports, with further restrictions anticipated. These developments are reversing years of close economic integration between the two nations. More alarmingly, Trump’s rhetoric has raised concerns about Canada’s sovereignty, with taunts suggesting that Canada could be viewed as merely an extension of the U.S., a sentiment reflected in his social media posts and comments about its provinces.

While the economic challenges posed by tariffs and trade barriers are formidable, they are not insurmountable. The more pressing concern is the potential erosion of Canada’s sovereignty, necessitating a strategic response from Ottawa.

Rethinking Defence: The Case for Gripen Jets

In response to these dual threats, it is increasingly argued that Canada should pivot towards acquiring the Gripen fighter jets. This would mark a significant shift in Canadian defence policy, driven by the need for greater independence and resilience in the face of U.S. pressure. Saab has proposed to set up a production line in Canada, which not only aligns with domestic industrial goals but also promises to create jobs and stimulate the economy.

The current procurement plan includes an agreement to purchase 16 F-35 jets from Lockheed Martin, with the delivery of the first unit scheduled for later this year. However, the option to acquire an additional 72 F-35s hangs in the balance and should be reconsidered in favour of the Gripen. This move would not only serve to protect Canadian interests but also create opportunities for international collaboration, such as the potential to manufacture Gripens for Ukraine.

Diversifying Trade and Strengthening Alliances

Canada’s economic strategy must evolve in response to the shifting landscape of U.S.-Canada relations. Recent threats from Trump, including potential tariffs on Canadian-made aircraft and warnings against closer ties with China, underscore the need for Canada to diversify its trade partnerships. The signing of a memorandum of understanding with South Korea is a step towards establishing a robust automotive sector independent of U.S. influence.

As Canada recalibrates its defence policy, strengthening relationships with other NATO allies becomes imperative. While maintaining cooperation with the U.S. remains important, Canada must also prepare for a future where its traditional ally could act against its interests. This means being cautious about dependence on U.S. military supplies and exploring alternative partnerships.

Strategic Choices in a Changing Geopolitical Landscape

Opting for the Gripen over additional F-35s could send a powerful message to the U.S. While it may provoke discontent in the White House, it demonstrates to Trump that Canada will not be bullied into submission. The ongoing interdependence in global supply chains, particularly in the aerospace sector, complicates the narrative of isolation. For instance, Canadian companies like Pratt & Whitney Canada are integral to the production of engines for many U.S. aircraft, including the Gripen, which utilises components from multiple countries.

Ultimately, Canada must assert its position. If the U.S. seeks to diminish trade and cooperation, Canada has the right to respond by forging its own path.

Why it Matters

This potential shift in Canada’s defence procurement strategy reflects a broader need for the country to assert its sovereignty and economic independence in an increasingly hostile geopolitical environment. By prioritising a domestic industrial strategy and diversifying its military partnerships, Canada can safeguard its interests and lay the groundwork for a more resilient future, all while navigating the complexities of its relationship with an unpredictable neighbour.

Share This Article
Analyzing the TSX, real estate, and the Canadian financial landscape.
Leave a Comment

Leave a Reply

Your email address will not be published. Required fields are marked *

© 2026 The Update Desk. All rights reserved.
Terms of Service Privacy Policy