Canada is at a major crossroads.
A $13.3 billion deal to acquire 88 F-35 fighter jets from the United States (US) could be scrapped, a move that could shake the close ties between the two countries.
Prime Minister Mark Carney, after meeting with French President Emmanuel Macron and UK Prime Minister Keir Starmer, hinted at shifting defense production to Europe - a move that could potentially anger Washington.
The decision is not just a matter of defense strategy, but also a big bet on the stability of Canada's economy.
The CEO of defense giant Bombardier, Eric Martel, warned that while canceling the F-35 may be a smart move, the impact on the company and the Canadian economy could be catastrophic.
With 60% of the company's revenue dependent on the US market, the threat of a trade war looms large.
Across the Atlantic, the European Union is accelerating billions of euros in investment in its own defense industry.
Arms manufacturers such as Dassault Aviation, Rheinmetall and Leonardo are now poised to seize the opportunity, adding to the pressure on Canada.
