(Bloomberg) — Canada’s new Prime Minister Mark Carney ordered a review of the country’s contract with the US’s Lockheed Martin Corp for F-35 fighter jets, a new front in the dispute between the two sides in response to tariffs and expansionist rhetoric from President Donald Trump.

Hours after being sworn into office on Friday, the former central banker asked Defence Minister Bill Blair to work with the armed forces and his department “to determine if the F-35 contract, as it stands, is the best investment for Canada, and if there are other options that could better meet Canada’s needs,” a defense ministry spokesperson said by email.

The C$19 billion ($13.2 billion) deal for 88 F-35s to replace Canada’s aging warplane fleet was finalized in 2023, with Lockheed beating out Saab AB and Boeing Co. in the contest. It’s divided into tranches and Canada has made a legal commitment of funds for the first 16 jets.

The deal hasn’t been canceled, but Canada needs to “make sure that the contract in its current form is in the best interests of Canadians and the Canadian Armed Forces,” the spokesman added. Blair first made the comments in a televised interview with the Canadian Broadcasting Corp. on Friday.

A Lockheed Martin spokesperson said the company values its “strong partnership and history with the Royal Canadian Air Force and looks forward to continuing that partnership into the future,” calling the F-35 “the most advanced, survivable and connected fighter aircraft in the world, enabling 21st century security and allied deterrence.”

“Questions about Canada’s procurement of the F-35 are best addressed by the Canadian and U.S. governments,” they added.

Canada faces mounting pressure to meet its commitment to spend 2% of gross domestic product on defense amid complaints from Trump about the country’s dependence on the US. Canada’s deep integration with the US at a time when Trump has levied large tariffs and threatened “economic force” to make the country a 51st US state complicates that goal.

During the leadership race for Canada’s ruling Liberal Party, Carney said that Canada should redirect its military budget instead of relying on the US.

“I will spend defense dollars in Canada, not the 80% that this government has spent in the United States up until now,” he said during a February leadership debate.

Saab had previously offered to build its Gripen E fighters in Canada. The Swedish technology company did not immediately respond to a request for comment outside of ordinary working hours. Saab shares have surged 72% since the start of 2025. 

Other countries are also reportedly taking a second look at alternatives to US contractors. Portugal is considering options to replace its existing F-16 fighter jets, with outgoing Defense Minister Nuno Melo citing “the predictability of our allies” and referring to “the recent position of the US in the context of NATO” as considerations, according to a Publico report Thursday.

(Updates with Lockheed Martin comment in fifth paragraph and additional extra detail on Saab warplane in tenth paragraph)