27th December 2025
Canada's $27 billion fighter jet procurement is more than a military choice it's a window into how global trade and defence politics intertwine.
The debate between Lockheed Martin's F‑35 and Saab’s Gripen is not just about stealth versus flexibility. It’s about jobs, industrial returns, and the ripple effects of U.S. tariff policy.
Part 1: The F‑35 Deal
Contract: Canada remains committed to buying 16 F‑35s.
Jobs Impact: The program supports 290,000 workers in the U.S., but Canada’s aerospace sector sees limited benefits.
Criticism: Ottawa argues it "didn’t get enough" offsets, leaving Canadian firms sidelined.
The F‑35 deal ties Canada tightly to U.S. defense supply chains, reinforcing Washington’s industrial dominance.
Part 2: Saab’s Gripen Pitch
Proposal: Saab offers Gripen fighters and GlobalEye surveillance aircraft, with 12,600 Canadian jobs if production is localized.
Industrial Promise: Assembly in Canada would revive Bombardier and other domestic firms.
Strategic Trade: Sweden’s pitch is not just about aircraft—it’s about shifting industrial benefits northward, away from U.S. factories.
Gripen represents a counter‑narrative: defense procurement as a lever for national job creation.
Part 3: The Tariff Connection
How does this link to U.S. tariffs?
Tariffs as Industrial Policy: Washington’s tariffs on steel, EVs, and agriculture are designed to protect U.S. jobs. The F‑35 program functions similarly—locking allies into U.S. supply chains.
Canada’s Frustration: Just as tariffs leave allies exposed, the F‑35 deal leaves Canada dependent on U.S. factories.
Global Fragmentation: Allies like Canada and Sweden explore alternatives (Gripen, local assembly) as a way to reclaim industrial sovereignty, echoing the broader trend of countries stitching new trade deals outside U.S. dominance.
In short, tariffs and defense procurement are two sides of the same coin: both are tools of industrial nationalism.
Part 4: Jobs as the New Battleground
U.S. Factories: Tariffs + F‑35 secure American jobs.
Canadian Ambitions: Gripen promises thousands of domestic jobs, appealing to Ottawa’s desire for industrial return.
Sweden’s Stake: Gripen contracts sustain Saab’s workforce, reinforcing Sweden’s aerospace sector.
The fighter jet saga is a jobs war in disguise, mirroring the tariff wars that fracture global trade.
Tariffs in the Sky
Canada’s fighter jet saga is linked to U.S. tariffs through a common logic: protect domestic industries, secure jobs, and bind allies into American supply chains. The F‑35 deal feeds U.S. workers, while Canada gets crumbs. Saab’s Gripen dangles Canadian jobs, turning procurement into a battle between Washington’s factories and Ottawa’s ambitions.
The world order is fracturing not only through tariff trenches but also through defense contracts. Jets and jobs are now part of the same global struggle—who controls the factories, who reaps the benefits, and who gets left behind.