The Canadian government is considering canceling its contract with U.S. defense contractor Lockheed Martin in light of the imposed tariffs by the Trump administration, the CBC reported.

In June 2023, Canada signed a $19 billion contract to purchase 88 of the fifth-generation F-35 fighter jets from Lockheed Martin. But the Canadian government is looking for alternatives to their air defense in response to the ongoing tariff war and President Donald Trump's repeated remarks about making Canada the 51st U.S. state.

Canada has already paid for 16 of the aircraft and is weary about supporting and maintaining a mixed fleet of fighter jets that would require their own unique training, hangers, infrastructure, and supply chain, all of which would increase cost. The first shipment of F-35s is scheduled to be delivered early in 2026.

Retired Lieutenant-Colonel and former F-35 test pilot Billie Flynn told the outlet that Trump's rhetoric has shaken many in the defense industry.

"I believe Canada has to adopt a transactional view that this is a contract that will go forward — or at the risk — of the trust that is always behind every purchase of American arms," Flynn said.

Canadian Defense Minister Bill Blair old the CDC, "Canada is actively looking at potential alternatives to the U.S.-built F-35 stealth fighter and will hold conversations with rival aircraft makers."

Blair, who was recently appointed to the post by new Prime Minister Mark Carney, said his country will likely accept the first shipment and then look for alternatives from European manufacturers, such as the Swedish-built Saab Gripen.

"It was the fighter jet identified by our air force as the platform that they required, but we are also examining other alternatives — whether we need all of those fighter jets to be F-35," Blair said.

On Thursday, it was reported that Portugal was reconsidering its purchase of F-35s and may back out of its contract with the aircraft maker, citing Trump's attitude toward NATO allies.

When asked what impact such an exit would have on Canada, a spokesperson for the defense contractor replied, "Lockheed Martin values our strong partnership and history with the Royal Canadian Air Force and looks forward to continuing that partnership into the future.

"Foreign military sales are government-to-government transactions, so anything further will be best addressed by the U.S. or respective customer governments," Rebecca Miller, Lockheed Martin's director of global media relations, said in a statement.

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