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he last thing the frayed alliance between the United States and Turkey needed was an intractable conflict over a trillion-dollar next-generation fighter aircraft. Yet that’s exactly where the two countries find themselves. In the past weeks it’s become apparent that neither side is willing to back down from a dispute over what should be two routine arms deals between close allies. The resulting standoff could complicate a raft of national security and economic issues crucial to both nations.

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Ankara insists it will proceed in a multi-billion dollar purchase of the top-end S-400 Russian air defense system, even after dealing with years of negotiations with U.S. officials over purchasing their system. It’s a decision Washington says will spell the end of a multinational, trillion-dollar partnership to develop and sell the next-generation F-35 stealth fighter, produced by Lockheed Martin, to its NATO ally. Speaking to a number of analysts and NATO officials, the broad consensus is clear: The spat adds additional stress to a frayed relationship with a one-time Cold War ally that remains critical to U.S. policy in the Middle East and Central Asia, while also highlighting Russia’s newfound aggressiveness in pushing its own global agenda.

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