VICTORIA, British Columbia — Faced with threats of economic punishment and annexation from the Trump administration, Canada has launched a series of initiatives to shift its traditional defense links with the U.S. over to Europe and other regions.
Foreign Affairs Minister Melanie Joly confirmed Wednesday to journalists that Canada has been in negotiations with European government officials about a joint defense alliance that would include joint procurement projects.
She noted the negotiations are at an advanced stage and were prompted, in part, by President Donald Trump’s threats to annex Canada.
Earlier this month, Trump levied a 25% tariff on a variety of Canadian goods. He has threatened to ruin Canada’s economy and has warned that the only way the country could escape such punishment would be to become the 51st American state.
Trump’s actions have caused widespread distrust of the U.S. in Canada and prompted the ruling Liberal government to forge new defense alliances, particularly with European countries.
“We need new partnerships,” Joly told the Canadian Press news service. “We have an over-reliance on American procurement, particularly in the defense sector.”
“The rhetoric coming out of the White House is not only concerning, but it is also a threat to our sovereignty,” she added.
Canada has not released details on the specific European nations it is in negotiations with or when those talks might be concluded.
But in a Monday news conference, Canadian Prime Minister Mark Carney revealed he has ordered a review of Canada’s purchase of the Lockheed Martin F-35 fighter jet.
The Canadian government committed in January 2023 to spending $13.2 billion (19 billion Canadian dollars) for the purchase of 88 F-35s from the U.S. government.
Carney, who linked the review to Trump’s ongoing trade war against Canada, said at this point the country has only committed to purchasing the first 16 F-35s. He noted that he has had discussions with French and British government officials about whether they could provide an alternative to the F-35 and whether that aircraft could be built in Canada. In addition, he pointed out that defense relations were a key part of his talks with French President Emmanuel Macron and British Prime Minister Keir Starmer during his visit Monday to those nations.
“Given the geopolitical environment, given the fact that there are options, given the need for value for money, given the possibility of having substantial production of alternative aircraft in Canada — as opposed to sending, as we have been, on average, 80 cents of every dollar to the United States — it’s prudent and in the interest of Canada to review those options,” Carney said at a news conference.
Canada’s Department of National Defence did not respond to questions about how long the F-35 review will take or what agency is conducting the exercise.
On Tuesday Carney announced Canada was strengthening its defense relationship with Australia by partnering with that country on a new over-the-horizon radar to monitor threats to the Arctic. The radar project is estimated to be worth $4.2 billion (CA$6 billion) and would utilize Australia’s Jindalee Operational Radar Network, an over-the-horizon system developed in conjunction with BAE Australia.
Carney noted the partnership with Australia will allow the system to be built and put into operation quickly.
In a televised news conference Tuesday, Carney said the new radar would help strengthen Canada’s commitment to the joint U.S.-Canada North American Aerospace Defense Command. But he also noted the radar will allow Canada to act on its own to better protect its territory.
“International institutions and norms that have kept Canada secure are now being called into question,” Carney said. “The United States priorities, once closely aligned with our own, are beginning to shift.”
Meanwhile, some Canadian defense industry executives have voiced caution about further angering the Americans, particularly with the possibility of dumping the F-35 deal.
“Canceling the F-35s might be a good idea, but we need to think about it,” Bombardier CEO Eric Martel said in a speech in Montreal on Monday. “We [Bombardier] have contracts with the Pentagon. Will there be reciprocity there?”
Rebecca Miller, director of global media relations for Lockheed Martin stated in an email that the company values its partnership and history with the Royal Canadian Air Force. She noted Lockheed Martin looks forward to continuing that relationship into the future.
Before becoming prime minister earlier this month, Carney voiced support for boosting Canada’s defense budget. But he also questioned the wisdom of Canada spending up to 80% of its military equipment budget on U.S. systems, particularly when the American government is threatening economic harm against Canada.
“We need to spend more of that money here in Canada,” he said in February.
Carney is expected to call a federal election on Sunday, multiple Canadian media outlets reported Thursday. The Trump administration’s threats against Canada are expected to play a major role in the political contest to form the next Canadian government.
David Pugliese is the Canada correspondent for Defense News.
