Spain has opted not to purchase U.S.-made F-35 fighter jets and will instead pursue European alternatives, the defense ministry confirmed on Wednesday, backing a report from El Pais.

This move follows strained relations between Madrid and Washington, sparked by Spain’s refusal to meet former U.S. President Donald Trump’s demand to increase defense spending to 5% of its GDP.

According to El Pais, citing unnamed government sources, Prime Minister Pedro Sanchez’s left-wing administration has dropped plans to acquire the F-35s and will now consider European-made fighters instead.

Spain had previously allocated €6.25 billion ($7.25 billion) in its 2023 budget for new fighter aircraft. British defense outlet Janes had reported Spain was weighing the purchase of up to 50 F-35 units.

However, the government has since prioritized allocating much of the newly announced €10.5 billion defense budget increase elsewhere, effectively ruling out the F-35 purchase.

The F-35 is produced by American aerospace company Lockheed Martin.

The defense ministry indicated that Spain will instead focus on European options like the Eurofighter and aircraft developed under the European Future Combat Air System (FCAS), spearheaded by Dassault Aviation and Airbus.

While Sanchez earlier this year pledged to reach NATO’s target of spending 2% of GDP on defense by 2024, he rejected Trump’s push for a 5% spending level, which led to threats of further U.S. tariffs.

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