Ottawa, Canada - Despite ongoing tensions, the US State Department on Tuesday announced that it had approved the sale of $540 million worth of military services and equipment to Canada.

The contract will provide Canada with vital equipment and sustainment services to keep the country's aging fleet of five C-17 Globemaster III aircraft in the air. The planes are crucial for transporting troops and military equipment, as well as humanitarian aid.

According to a notification put out by the Department of State, the US will send major and minor modifications, aircraft maintenance support equipment, ground handling equipment, spare parts, consumables, repair support, and more.

"This proposed sale will support the foreign policy and national security objectives of the United States by helping to improve the military capability of a NATO Ally," the notification read.

Europe EU is "prepared for every scenario" after Trump threatens to hike car tariffs

"The proposed sale will improve Canada's capability to meet current and future threats by ensuring the operational readiness of the Royal Canadian Air Force."

Canada is also weighing up whether it will purchase half a dozen new "flying radars" from either Sweden or the US, potentially costing a total of more than $5 billion.

The Airborne Early Warning and Control aircraft would operate at an altitude of more than six miles and be packed with radar and detection equipment designed to search for enemy missiles, aircraft, and drones.

While the contracts would be made with either a Swedish or a US company, Ottawa is keen for their manufacturing to take place in Canada.

China Rubio warns China against "destabilizing" Taiwan ahead of Trump's trip to Beijing

"The Liberal Party of Canada is committed to acquiring Canadian-made Airborne Early Warning and Control aircraft," said a spokesperson for Canada's secretary of state for military procurement.

"The government has undertaken a rigorous analysis of the options, moving the procurement forward much faster than usual."

Ongoing discussions around military procurement from the US in particular comes at a complicated time, as Prime Minister Mark Carney's government seeks to reduce decouple from the US.