Bombardier warns Canada on F-35 contract review risks

The CEO of Bombardier Inc. is worried about Canada's plan to review a deal to buy F-35 fighter jets from Lockheed Martin. This review is part of Canada's response to ongoing trade tensions with the United States. Eric Martel, the CEO, spoke in Montreal and emphasized that while cancelling the F-35s might seem reasonable, it is important to consider the consequences. He mentioned that Bombardier has contracts with the U.S. government and raised the question of whether Canada would receive any benefits in return. Recently, Canadian Prime Minister Mark Carney announced a review of the F-35 purchase agreement, worth $19 billion. The deal, finalized in 2023 for 88 jets, has not been cancelled but the government aims to ensure it is in the best interest of Canadians and their military. The tension escalated earlier this month when U.S. President Donald Trump imposed tariffs on Canadian goods. He has often said that he believes Canada should be part of the U.S. Some Canadian leaders disagree with that idea. Martel acknowledged that Canada has relied heavily on the U.S. for military defense. In 2023, Canada chose Boeing as a supplier for military surveillance aircraft over Bombardier, which was a setback for the company. Bombardier's stock has fallen since Trump's election in 2016, but it has seen growth recently. Bombardier faced challenges in 2025 due to uncertainty around tariffs, leading them to not provide financial forecasts. A significant portion of Bombardier's business comes from the U.S., and its products are affected by the trade agreements between the countries. The company has a complicated supply chain with parts sourced from the U.S. and Mexico. For example, its flagship Global 7500 jet has crucial components made in various U.S. states, making it vulnerable to tariffs despite being assembled in Canada. Martel noted that two-thirds of Canada's aerospace exports are reliant on the U.S. market.