by Daniel Brouse
March 18, 2025
Recent policy decisions by the Trump administration have led Canada and Australia to reconsider significant defense contracts with the United States.
Canada’s Reassessment of the F-35 Fighter Jet Deal
Canada is reevaluating its C$19 billion contract for 88 Lockheed Martin F-35 fighter jets. This reconsideration stems from escalating trade tensions, particularly the Trump administration’s imposition of tariffs on steel and aluminum imports. Prime Minister Mark Carney has directed Defense Minister Bill Blair to explore alternatives, though switching to other aircraft could entail increased costs and operational complexities.
Bombardier CEO Eric Martel expressed concerns that canceling the F-35 deal might prompt the U.S. to target Canadian firms’ contracts, potentially affecting Bombardier’s U.S. agreements.
Australia’s Scrutiny of the AUKUS Submarine Pact
Australia is reassessing its involvement in the AUKUS pact, which includes acquiring up to five Virginia-class submarines from the U.S. Former Prime Minister Malcolm Turnbull criticized the agreement, arguing it compromises Australia’s sovereignty and security without guaranteeing submarine delivery. He emphasized that despite Australia’s financial commitment, there’s no assurance of receiving the submarines, potentially leaving the nation dependent on U.S. military support.
Additionally, a nominee for the U.S. Undersecretary for Defense Policy suggested that selling submarines to Australia could be unwise amid rising tensions with China over Taiwan, indicating potential reluctance within the U.S. defense establishment.
These developments reflect growing unease among U.S. allies regarding recent American policy decisions, leading to potential shifts in longstanding defense and economic partnerships.