The future of stalled US-Canada trade negotiations depends partly on Canada’s decision to purchase American fighter jets, US Ambassador Pete Hoekstra said Wednesday, linking two major bilateral issues as tensions between the neighboring countries remain high.
Hoekstra told a manufacturing conference in Ottawa that restarting trade talks “will not be easy” and urged Canada to “harmonize” with the United States on economic and military cooperation, including its planned F-35 fighter jet purchase.
The comments add pressure on Canada as it reviews a multibillion-dollar deal to buy 88 F-35 jets from US manufacturer Lockheed Martin. Prime Minister Mark Carney’s government began reconsidering the 2023 agreement earlier this year amid rising tensions with Washington, while Sweden simultaneously courts Canada with its Gripen fighter jets.
Trade negotiations between the two countries broke down in October after Ontario ran an anti-tariff advertisement featuring former President Ronald Reagan that angered President Donald Trump. Despite Carney’s personal apology to Trump, talks have not resumed.
Sponsored · Emerita Resources Corp.
Hoekstra previously warned in May that Canada’s failure to complete the F-35 purchase could threaten the North American Aerospace Defense Command, arguing both nations must operate compatible aircraft for NORAD to function effectively.
Related: US Pressures Canada to Honor F-35 Fighter Jet Agreement
“If Canadians are flying one airplane, we’re flying another airplane, it’s no longer interchangeable,” Hoekstra said at the time.
Canada committed to the F-35 deal in 2023 after years of delays, with 16 of the 88 planes already in production. However, Canada’s Auditor General reported in June that costs have increased nearly 50% from the disclosed $19 billion to $27.7 billion, excluding weapons and infrastructure.
The review has created friction between Ottawa and Washington at a time when the countries face broader trade disputes. Trump imposed tariffs on Canadian goods over fentanyl trafficking concerns, and Canada retaliated with its own levies before ultimately removing them in September.
Swedish Defense Minister Pål Jonson visited Canada this week, promoting the Gripen as an alternative that would include significant domestic manufacturing. Industry Minister Mélanie Joly said Tuesday that Canada “didn’t get enough” industrial benefits from the F-35 contract and needs more Canadian jobs from any fighter jet deal.
Canada faces a pressing timeline as its aging CF-18 Hornet fleet approaches the end of its operational life. The country currently has only a few dozen fighter pilots, raising concerns about the feasibility of operating two different aircraft types simultaneously.
Hoekstra said Wednesday he remains hopeful trade talks can restart, but acknowledged significant challenges remain between the two countries.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
