The Canadian federal industry minister is urging U.S.-based Lockheed Martin to enhance economic benefits in Canada for the planned purchase of 88 F-35 fighter jets. Industry Minister Mélanie Joly mentioned in an interview on Radio-Canada’s Les coulisses du pouvoir that if Lockheed Martin doesn’t comply, Ottawa may opt for a reduced number of F-35s and consider acquiring Gripen-E fighter jets from Sweden’s Saab, which has offered to assemble the aircraft in Canada.
Prime Minister Mark Carney continues to deliberate on the $27.7-billion fighter jet contract while the F-35 review, initiated in March, progresses amid U.S.-Canada tariff disputes.
Joly outlined two potential paths for the F-35 review. Ottawa could negotiate additional economic benefits with Lockheed Martin to retain the full contract or opt for a smaller F-35 fleet.
Canada is obligated by contract to buy a minimum of 16 of the 88 planned Lockheed Martin jets.

Joly stated, “It will be up to the prime minister to decide. But in the meantime, it is certainly my goal to be able to get more out of the F-35 contract from Lockheed Martin, and to continue discussions with Saab.” Acquiring a mix of aircraft might pose challenges for the Canadian Armed Forces, but Joly expressed confidence, particularly if additional benefits are offered.
“All G7 countries have a mixed fleet,” she pointed out.
As Canada readies to boost defense spending significantly, Joly emphasized three priorities: enhancing military capabilities, fortifying geopolitical ties through new alliances, and fostering jobs in the Canadian military-industrial sector.
“You can be sure that at the decision-making table, the cabinet table, that’s what concerns me: ensuring that Canadian taxpayers’ money can be used wisely to reduce our dependence on the United States and also create jobs in Canada,” Joly remarked.
During recent testimony before a parliamentary committee, senior leaders from National Defence and the Canadian Armed Forces expressed strong support for the F-35. Deputy Minister Stefanie Beck and Lt.-Gen. Jamie Speiser-Blanchet highlighted the advantages of “fifth-generation” fighter jets like the F-35, emphasizing stealth capabilities against enemy detection systems and rapid data processing.
Beck stressed the significance of having fifth-generation aircraft due to the capabilities possessed by adversaries. Speiser-Blanchet, the Royal Canadian Air Force commander, emphasized the urgency of transitioning to a new fighter fleet.
