Canada's F-35 stealth jet ambition hit by 50 percent cost surge, US warning of military unpreparedness
Reuters US issues red alert over Canada's F35 readiness citing failed infrastructure rising costs and defence shortfalls as Ottawa races to meet 2028 delivery deadline
A warning from the US Joint Strike Fighter Program Office puts the vision of the sleek F‑35 stealth fighter touching down on home soil by 2028 on hold. According to Canada's Auditor General Karen Hogan, a report released June 10 states that critical infrastructure, hangars, maintenance facilities, and secure networks built at Cold Lake, Alberta, and Bagotville, Quebec, 'weren't up to American standards'. This failing forced costly redesigns and delays.When US officials assessed readiness in June 2024, they rated Canada RED - indicating 'significant issues' that demanded senior-level intervention ahead of the planned December 2028 arrival of the first jets.
Canada's $19 billion plan to buy 88 F‑35As has ballooned to at least C$27.7 billion and could reach C$33.2 billion, nearly a 50 percent increase. Much of the overspend stems from fluctuating foreign exchange rates, inflation, outdated cost projections, and necessary interim infrastructure, on top of another C$5.5 billion needed for Full Operational Capability.
Defence Minister David McGuinty accepted Hogan's findings. He said the department will perform annual cost reviews and manage risks, pressing on with procurement. The government expects delivery of the first 16 jets 'in the next several months,' with initial training in the US, and full operations in Canada by 2028.
Adding to the scramble, the Royal Canadian Air Force has suffered a chronic pilot shortage since at least 2018, undermining efforts to staff and fly the stealth fleet. Internal assessments show just 58 percent of personnel are ready for emergencies, and only 40 percent of fighter jets are deemed combat‑ready.Beyond infrastructure and cost, the issue touches national sovereignty. Relying on American control over F‑35 software and parts, some analysts argue, could leave Canada vulnerable at moments of political strain. The saga revived a fierce debate about whether Canada should seek alternatives like Sweden's Gripen or retain flexibility with future purchases.
Prime Minister Mark Carney ordered a comprehensive review in March 2025, partly prompted by US policy pressures and trade tensions. Defense Minister David McGuinty blamed the cost overruns on inflation and the pandemic, but told journalists Tuesday that Canada was soon to receive its first 16 F-35s. 'We'll be taking possession of those 16 F-35 fighter jets in the next several months,' he added.
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Time of India
16 minutes ago
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Innovation takes a backseat at small companies as tariffs become a full-time preoccupation
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Trump has argued that curtailing foreign imports with tariffs would help revive the nation's diminished manufacturing base. Analysts and various trade groups have warned that fractured trade ties and supply chains may depress R&D activity of U.S. tech and health care companies that rely on international partnerships or foreign suppliers. Small companies, which often drive the innovations that create jobs and economic growth, already are under strain. With fewer people on staff and tighter budgets compared to large corporations, entrepreneurs say they are spending more time on cutting costs, suspending or arranging orders, and deciding how much of their tariff-related costs to charge customers. That means they're spending less time thinking of their next big ideas. Schylling Inc., a Massachusetts company that produces modern versions of Lava lamps, Sea-Monkeys, My Little Pony and other nostalgic toys, has its products made in China. 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Made Plus, a Maryland company that makes athletic shoes at a small factory in the state capital, put a planned golf line on hold because two key components - a foam insole and the tread for the bottom of the shoe - currently are made in China, founder Alan Guyan said. The company customizes its shoes on demand and charges $145 to $200 a pair. The footwear is made from recycled plastic bottles with advanced knitting, 3D printing and computerized stitching techniques. It's looking into getting components from Vietnam instead of China. Embracing new technology is essential to restoring manufacturing capability in the U.S. and competing with Asia, Guyan said. But given ongoing trade frictions, he said he does not want to invest time or money evaluating the latest embroidery and knitting machines, which come from Germany, Italy, China and the U.S. "We're just battening down the hatches a little bit and just hoping that there's enough influence in the community of footwear that it will somewhat change and get resolved and we can move forward," he said of the tariff roller coaster. In contrast, many big companies are forging on. Google parent Alphabet confirmed late last month that it still planned to spend $75 billion on capital expenditures this year, with most of the money going toward artificial intelligence technology. What's next for R&D? Sonia Lapinsky, a managing director at consulting firm AlixPartners, has advised her clients to limit tariff discussions to a small group of executives and to keep their product creation cycles in motion. Businesses have an even greater imperative to come up with attention-grabbing innovations when consumers may be reluctant to open their wallets, she said. Yet smaller companies may struggle to wall off tariff discussions from the rest of the business. Learning Resources CEO Rick Woldenberg said that roughly 25% to 30% of the 350 employees at the educational toy company's headquarters, including product developers, are working at least part-time on tariff-related tasks. The company usually develops 250 different products a year and expects to get half that many off the drawing board for 2026, Woldenberg said. While exploring factories in countries besides China, he said, Learning Resources is delaying the next generation of its interactive robots that help children develop computer programming skills through games and other activities. The family-run business and Woldenberg's other toy business, hand2Mind, are locked in a legal battle with the Trump administration. The jointly owned companies filed a lawsuit accusing the president of exceeding his authority by invoking an emergency powers law to impose tariffs. A federal judge ruled in favor of the two companies last month, and the administration has appealed the decision. Woldenberg said he's ready to take the case to the U.S. Supreme Court . "It's a win at the Supreme Court that we need," he said. "And so until then, there will be no certainty. Even then, if the government is bound and determined to keep us in an uncertain situation, they'll be able to do that."
