Canada Considers Saab Gripen After Trump Imposes Tariffs

The Government of Canada is reviewing its defense procurement strategy after President Donald Trump applied Section 338 tariffs to the country for the first time. While the F-35 fighter jet program is not directly subject to these tariffs, the resulting trade instability has prompted Ottawa to seek ways to reduce its dependency on United States defense suppliers.

Canada is currently considering a mixed fleet strategy to ensure strategic autonomy. The Swedish-made Saab Gripen has emerged as the leading candidate to supplement or replace portions of the planned U.S. acquisition. Although Canada remains contractually obligated to purchase 16 F-35s, the full order of 88 aircraft is now uncertain.

This shift creates significant risk for Lockheed Martin, which faces a potential downsizing of its order. Conversely, Saab AB could benefit from the pivot, as Canada may seek a domestic production plant and technology transfer as part of a deal for the Gripen jets.