(Bloomberg) – Canada’s new Prime Minister Mark Carney has ordered a F-35 Fighter Jets contract with the U.S. Lockheed Martin Corp, a new front for disputes over President Donald Trump’s tariffs and expansionist rhetoric.
Hours after being sworn in on Friday, the former central banker asked Defense Secretary Bill Blair to work with the armed forces and its departments to “determine whether the F-35 contract (such as the purpose) is the best investment in Canada and whether there are other options to better meet Canada’s needs,” a Defense Ministry spokesman said via email.
The $19 billion CAD ($13.2 billion) 88 F-35 deal to replace Canada’s aging fighter fleet, finalized Lockheed in 2023 to beat Saab AB and Boeing. It is divided into divisions, and Canada has made legal commitments for the first 16 jets.
The spokesman added that the deal has not been cancelled, but Canada needs to “ensure that contracts in current form are in the best interests of Canadians and the Canadian Armed Forces”. Blair commented for the first time in a TV interview with Canadian Broadcasting Corp. on Friday.
Lockheed Martin did not immediately respond to requests for comment outside normal working hours.
Canada faces a pledge to commit 2% of GDP to national defense, a complaint from Trump about the country’s dependence on the United States. When Trump imposed large tariffs and threatened “economic forces” to make the country the 51st country in the United States, the in-depth integration of Canada and the United States complicated this goal.
During the leadership competition for Canada’s ruling Liberal Party, Carney said Canada should redirect its military budget rather than relying on the United States.
“I will spend defense funds in Canada, not 80% of what the government has spent so far in the United States,” he said in a leadership debate in February.
Other countries are also reporting that alternatives to U.S. contractors are being looked at for the second time. Portugal is considering the option to replace its existing F-16 fighter jets, with outgoing Defense Secretary Nuno Melo as “predictability of our allies” and mentioning “the latest U.S. position in NATO” as a consideration.
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