This dispute could escalate if the US government becomes involved. There is a chance that Canada may decide to look to Europe for its next fighter.
Mean while the CF-18 fleet continues to get older.
The US Government is already involved since Boeing made an official complaint to a Federal Agency which, by law, cannot ignore it.
For some reason Canadians just don't understand that any order for F-18s by Canada means very little for Boeing's bottom line. It makes enormous amounts of money from the sale of commercial jetliners and the sale of F-18s to Canada, while desirable, means very little in terms of the stakes involved with its complaint against Bombardier.
If Canada decides to do something as stupid as buying a European fighter instead of the F-18 or F-35, then it deserves what happens to the US/Canada defense relationship. It won't be pretty. The US holds the cards.
The bottom line is that a very ignorant Canadian Prime Minster, trying to be Mr. Macho, made an incredibly stupid decision concerning the F-35 and Canada now has to live with the consequences. That decision was further exacerbated by a puffed-up cop masquerading as a Defense Minister and Battle Planner extraordinaire who tied a commercial dispute to a military contract. He wasn't even smart enough to analyze the situation and to see where Boeing was coming from
Frankly, it's Mickey Mouse time in Canada.