*

Canada reviews $13.29-billion fighter jet contract amid

trade

war with US

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Canada's defense spending under pressure from US, aims

closer to

NATO target by 2030

(Releads with Carney comments paragraphs 1-5 and last

paragraph, comment by Bombardier CEO paragraph 7)

By David Ljunggren

OTTAWA, March 17 (Reuters) - Canada is looking for

possible alternatives to its deal to buy U.S. fighter jets in

part because it relies too much on the United States for

security, Prime Minister Mark Carney said on Monday.

Carney made the comments just days after ordering a review

of a C$19-billion ($13.29 billion) contract for 88 F-35 fighter

jets from Lockheed Martin ( LMT ). Canada is locked in a trade

war with the United States.

Canada's defense ministry says the contract remains in place

and Ottawa has made a legal commitment of funds for the first 16

F-35 aircraft. Carney made clear Canada would seriously look

elsewhere.

"It is clear that our security relationship ... is too

focused on the United States. We must diversify," he told

reporters during a visit to London, noting that Canada spent

about 80% of its defense budget on American weapons.

"Given the need for value for money, given the possibility

of having substantial production of alternative aircraft in

Canada ... it's prudent and in the interest of Canada to review

those options," he said.

Carney did not mention specific firms. Sweden's Saab

, which lost out on the fighter jet contract to

Lockheed Martin ( LMT ), had promised to assemble its planes in Canada.

Canadian firms also benefit from the relationship.

Bombardier CEO Eric Martel said he was concerned

Washington could target the planemaker's U.S. contracts if

Canada canceled the Lockheed Martin ( LMT ) deal.

U.S. President Donald Trump has slapped tariffs on Canada

and mused about turning it into the 51st state.

Philippe Lagasse, a professor at Carleton University who

specializes in procurement, said buying 16 F-35s and then adding

another jet would be expensive.

Canada, pressured by successive U.S. administrations to

increase defense spending, last year pledged billions more for

the armed forces and said military expenditures would be closer

to the NATO target by 2030.

In a statement, Lockheed Martin ( LMT ) said it valued its ties with

Canada and referred procurement questions to the government.

The U.S. Defense Department did not respond to a request for

comment.

U.S. CUT OFF INTELLIGENCE SHARING WITH UKRAINE

Washington this month briefly cut off intelligence sharing

and weapons shipments to Ukraine, raising questions about the

potential perils of becoming too dependent on U.S. systems.

Canada and other allies are largely dependent on the United

States for other support, such as the ability to identify

targets, process data and suppress enemy air defenses.

"There are a lot of people rethinking right now, 'How

reliable is access to American military technology going to

be?'" said David Perry, a defense expert who serves as president

of the Canadian Global Affairs Institute think tank.

"All of the options, beyond sticking with our status quo

plans, are much less good."

Canada signed the F-35 deal in 2023 and said it expected the

first plane to be delivered in 2026.

Ottawa has repeatedly extended the lifespan of its fleet of

Boeing CF-18 fighters, some of which are more than 40

years old. They are due to fly to 2032, the point at which all

88 F-35s are supposed to be operational.

Moves by European nations to boost defense spending could be

beneficial since they might open the possibility of more work

for Canadian firms, Carney said.

($1 = 1.4298 Canadian dollars)