Canada pauses $19b defence deal amid Trump trade war

A US F-35 in action
A US F-35 in action (AP)
  • Canada is reviewing its planned purchase of 88 F-35 fighter jets from Lockheed Martin, a deal worth CAD$19 billion.
  • The decision comes amid escalating trade tensions with the United States under President Donald Trump.
  • While the contract remains active, new Prime Minister Mark Carney said he wants to ensure it's the best investment for Canada's defence needs.
  • The review will explore alternative options and consider the "changing environment" of US-Canada relations after Trump imposed a number of trade tariffs.
  • Canada originally selected the F-35 in 2023 after years of deliberation. The planes are intended to replace the country’s ageing F-18 fleet.
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