Canada investigates EU defense collaborations to lessen dependency on U.S., reports say

A senior Canadian government official confirmed on Wednesday that Canada is in talks with the European Union aimed at decreasing its reliance on the United States for defense procurement, as reported by AP on Thursday.

Canada investigates EU defense collaborations to lessen dependency on U.S., reports say
Canada is in talks with the European Union aimed at decreasing its reliance on the United States for defense procurement, as confirmed by a senior Canadian government official on Wednesday, with AP reporting on the matter the following day.

The official, who requested anonymity, indicated that the discussions may involve the manufacturing of fighter jets in Canada. This effort falls in line with Prime Minister Mark Carney's broader approach to diversify Canada’s defense supply chain and enhance security partnerships with the EU.

This initiative arises amid concerns over Canada’s dependency on the United States for military equipment. U.S. President Donald Trump's trade policies and associated economic pressures have heightened these concerns, leading some Canadian officials to advocate for increased autonomy in defense procurement.

In this context, Defense Minister Bill Blair is reassessing the proposed purchase of American-made F-35 fighter jets, exploring alternative options "given the changing environment," according to a defense spokesperson over the weekend. One of these alternatives includes Sweden's Saab JAS 39 Gripen fighter jets, which could be assembled and maintained in Canada.

"This is very serious. We’ve been in talks to work on defense procurement together," Foreign Affairs Minister Melanie Joly stated to the Canadian Broadcasting Corporation. "I went to Europe a month ago to make sure we could be a part of that partnership... It’s yielding toward good news." Joly emphasized Canada’s excessive reliance on U.S. military procurement and supported the idea of seeking diversified partnerships globally.

Although Canada has an existing contract with U.S. defense contractor Lockheed Martin for the F-35 jets, Ottawa has only legally committed funds for the first 16 aircraft. Canada agreed to purchase 88 F-35s two years ago, yet the entire acquisition has become uncertain.

Carney's initiatives to strengthen defense partnerships were highlighted during his recent discussions with French President Emmanuel Macron and British Prime Minister Keir Starmer. His trip began on Monday and marked his inaugural international visit since taking office the previous Friday.

At the same time, the EU is advancing its own defense strategy. On Wednesday, the European Commission announced its "Readiness 2030" security initiative, urging member states to focus on purchasing military equipment from European sources. This strategy aims to reduce dependency on U.S. defense manufacturers, providing financial incentives for member states that commit at least 65 percent of their defense procurement to suppliers from the EU, Norway, or Ukraine.

Historically, EU nations have obtained about two-thirds of their military equipment from the United States. However, there is growing momentum for a "Buy European" strategy, particularly in light of recent signals from the Trump administration encouraging Europe to take more responsibility for its defense, including support for Ukraine.

Thomas Evans for TROIB News

Find more stories on Business, Economy and Finance in TROIB business